Thank you guys for the great responses!
This design was actually planned to us the 4510 counter, and 4511 drivers.
I'm sorry if, I didn't completely understand your responses..still learning. But using the 4510 and 4511, do you think my modification would work?
Kakin, when you say route the common to voltage, and the counts to their respective pins....could you explain that to me?
I researched this a bit, would this encoder tell the difference between it spinning counting CW or CCW? and be able to count up or down? And how cost effective/difficult would this be for a beginner to implement?