After battling the pencil struggle for years, I have decided to try an incentive for classroom participation. We will have the usually sharp and dull bins for pencils up in the front of the classroom. My class will start with 40 sharp pencils and at the end of every day my students will return all pencils! My pencil manager will count the pencils and make sure that they are all "happy and healthy". If they are, we get to add a day to our count. If a pencil was "lost, sad, or sick," the day counter resets back to zero. Think of those "X number of days without accidents" signs. When my class gets to 25 days, we get popsicles at recess and start all over.
I hope this sign helps your struggles!
Credit for borders, fonts, and clipart are included at the end of the PDF.