Interesting and worthwhile topic, Jim.

My 2 cents worth:

To me, the term "Grading" connotes a letter or numerical SUMMARY grade (A to F; 100 to O; etc.). I like the term "Condition" rather than "Grade", but can live with either, as long as it's not an "MS xx" system.

I would add an additional level, as Larry H. suggests, and I also like the idea of describing hot-stamps and other critical features separately. This is tinkering with the names and definitions, which can be ironed out as the idea moves forward.

Also, I note that TCR and the Herz "Nevada Chips" books, among others, has grading or condition definitions. May want to consult those, so we don't reinvent the wheel. Heck, even Borland Blue Book has a 5- or 6-level system of describing chip condition, from UNC (Uncirculated) to WORN, so there are lots of references to check into for options on descriptors of condition.

Keep it reasonably simple, and I'm on board with the idea.