Kudos are a way to hand out thanks and appreciation to your fellow players. Using the kudos commands will send a request to staff that a Kudo be given to a fellow player, along with the reason. If this requset is approved, said player will receive .25 XP. (Kudos can also be given to staffers; their player character will receive the XP.)
Players will receive 4 Kudos per episode. Since episodes last approximately 2 weeks each, this means you have 2 Kudos per week. People get so few Kudos to hand out because they're meant to reward excellence. If you have an absolutely amazing scene with a player, go ahead, suggest them for a Kudo! However, also remember you can vote for them in episode logs. Also, you may only give one Kudo to each player during any give episode.
Use your Kudos wisely and well, and spread the love!