After some reflection, I believe this is how the featured stories are going to work.

At least once a month a story will be Featured.

Featured stories will be stories that have immersive storytelling, good grammar, and show consensual relations in some positive manner.

Stories set to "On Hiatus" will not be featured.

The story will get the following comment on the first chapter:
Congratulations! Your story has been Featured in Consent is Sexy!

The featured story will get a forum post that has the story title, the author, a short summary from myself and the reasons that I think the story deserves to be featured. The author also gets a dorky little digital 'sticker' that they can put on their profile page, custom made by myself.

***3/23/205*** Edited the main post to reflect that the stories that are featured will not be given a rating, instead stories will be featured because I, or another admin, thinks the story stands out as a good story.

***Edited 4/10/2015*** Updated & revamped the entire FAQ.