Basicly its awarded a to a person each "week" who has said the most stupid thing in that week and therefor is a nugget. Dosn't it say that on the first page?
"Well well well, what do we have here then?! I'll tell you what we got, we have a new award, one that is sure to bring great popularity to those who receive it albeit through humiliation and utter disbelief which will no doubt result in the words "did he/she just say/do/post that!!?". This prestigious accolade will be given out weekly to the member who we ascertain to have given the dumbest, most moronic, head scratching inducing contribution of the week. The prize for being the chosen one ladies and gentleman, is the Nugget of the Week. Yes you will be labelled a Total Nugget for the duration of the upcoming week and just to make sure that you don't forget or that others don't miss the fact that you are a Total Nugget™, you will have a nice bright image in your posts as well as in your Profile (shown below). Yes we are so kind we know."
There we go, read first post lol.