It's just little rewards for people if they help you. For example, I could ask you to create a spaceship sprite for me, and if you do, I give you something (eg. 5 love-its on your projects).
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Yes. It makes the contestant happy and makes the contest holder just a little more popular.
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For example, you would say, "Hi! If you win first place in my coloring contest, I'll give you 10 love-its!" And if they won, you would click the love-it button shaped like a heart on five projects of their say-so to boost popularity, and POSSIBLY get them on the front page.
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An art request, would be when they draw something you ask them to draw and put it on a project.
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