The last reason that blogging awards are so popular isn’t usually mentioned, but a powerful incentive for hosting and running an awards competition is to help make the host a center of power in the community. By creating the forum, inciting the inevitable drama, setting the rules, and (likely) helping to entrench one’s friends and supporters as powers within the new community hierarchy, those who create awards are likely to reap significant benefits from doing so.
anil dash on how (blogging) awards work