The First Annual Saxxy Awards was a contest held amongst the community to create a replay in order to earn "the most prestigious virtual award in combat filmmaking: a foot-high bust of an almost entirely naked Australian man." The competition was announced alongside the Replay Update.

Promotional Video

The Rules

“Please keep entries to under a minute, and at a resolution of at least 720p. Only entries created between 12:00:00 AM GMT, Thursday, May 5th, 2011 and 11:59:59 PM GMT, Thursday, May 19th, 2011, and submitted by 11:59:59 PM GMT, Thursday, May 19th, 2011^[1], will be considered.
Only one entry per category per Steam user will be considered. If you submit multiple entries in a single category, the last entry submitted by the deadline will be considered, and the others will be ignored. Entries by multiple authors are allowed.
No entries containing copyrighted materials (outside of Valve's IPs) will be considered. Materials (.DEM files, for example) may be requested to prove original authorship.
The use of external software in the creation of entries is permitted in all categories. However, the Replay renderer MUST be used for initial TGA/WAV data if an external editor is used, OR if rendering an entry from within TF2. Video Preset "Maximum" MUST be used, regardless of whether you are rendering a movie from TF2 or raw TGAs and a .WAV.

-- Saxxy Awards page

Voting

At 11:59:59 PM GMT, Friday, May 20th, 2011, the Saxxy Awards submission period ended, and Francis the Talking France opened the official voting for the best videos.
At the Battle voting page, the user was given two videos of the selected category, and could vote for their preferred one. The given videos were randomly chosen, and new ones were selected after each vote. Voting was only available to Steam account holders that owned Team Fortress 2, and a given user could only vote a maximum of one hundred times per day. The Battle voting round of the Saxxy Awards voting process officially ended at 4:30 PM PST, Thursday, May 26th, 2011.

Finalists

The Finales voting stage began at 3:10 PM PST, Thursday, June 2nd, 2011. Unlike at other awards shows, where the winners are necromanced by magicians, the Saxxy Award winners in all twenty categories were selected by Steam community members, through the nominees page. Each player was allowed one vote per category. Players were able to change their vote until the voting period ended at 11:00 AM PST, Monday, June 6th, 2011.

The Awards Show

At 5:35 PM PST, Monday, June 6th, 2011, the Awards Show was announced on the official blog. Hosted by Saxton Hale, The First Annual Saxxy Awards Show LIVE aired at 3:00 PM PDT on Wednesday, June 8th. The Award Show lasted one hundred minutes, as specifically stated during the post. There were 20 categories, with a Saxxy awarded every five minutes.
The winners were the following:

Most Inventive Kill – [LapFox] The Limie One and [LapFox] Derpy Engie

Best Mid-air Murder – Q. and Quark

Biggest Massacre – tF

Funniest Replay – ArseGravy and Post Lamp

Best Getaway – Goronix

Best Revenge – Kaedechtu

Mostest Pwnage – Maso

Most Heroic – .G(omez)

Best Set Design – WilliamBoo ONEHOSTAGEEVERYHOUR

Best Team Costume – CloverNoodle, DarthZ, Hamz The Gentle Manne, Beep, Legion, Fire on the Mountain, and Moby The Duck

[This video has been removed]

Best Original Soundtrac – Zoolooman, Juno, and rallyk

Best 30 Second Trailer – Super Paper Smash Mansion Kart and Aperture Flicky

Best Coordinated Combat – JulianosTheGreat

Most Dramatic – OneOfThoseDays and Damone

Best Cinematography – Sauctaliens

Best Editing – Heeere's Johnny

Most Epic Fail – rage

Most Extreme Stunt – [RMF]RIKUSYO

Players' Choice – jig

[This video has been removed]

Best Overall Replay – xlr105 Chicken Eater

Winners Reactions

WilliamBoo ONEHOSTAGEEVERYHOUR

CloverNoodle
[This video has been removed]

rage
[This video has been removed]

[RMF]RIKUSYO

jig

Update history

May 5, 2011 Patch (Replay Update)

Launched the First Annual Saxxy Awards.

May 19, 2011 Patch

Extended the Saxxy contest deadline to 11:59:59 PM GMT, Friday, May 20th, 2011

June 8, 2011 Patch

Removed the Saxxy Awards promotion on the main menu.

team fortress 2 first annual saxxy awards