Increased online learning is helping many appreciate that online grading, formative assessment, and summative testing can cause instructor burnout and leave little time for more productive instructor interactions. We reimagined grading, assessment, and testing in an extended program of design-based research using situative theory to refine online courses in secondary, undergraduate, graduate, and technical contexts. This research minimized private instructor-student interactions (including grading and private formative feedback) while maximizing public interactions. We present 10 assessment design principles, including a new principle concerning diversity and equity. We assume that these principles will be new to many readers and counter-intuitive to some. These principles focus on assessment functions (rather than ostensible purposes) and align learning across increasingly formal levels. We argue that doing so can maximize formative and transformative assessment functions, position students as authors, rather than consumers, reposition minoritized students to empower them, and increase validity and credibility of evidence.