You can choose to grade your students performance in two ways: by assigning points for achievements (like completing course, lesson, or assignments), and/or by grading them like in school.
The points users collect go to their balance. It can currently by used as a badge criteria in Namaste PRO and can be displayed on the site. There is more to come on points.
The grading system can be used inside your Gradebook page to manage a real gradebook. Each student can have individual grades for each lesson and / or one final grade for the whole course.