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Hi! It allows users to boost posts/comments up in the ranking algorithm. It's distinguished from "sats" (aka upvotes) because "sats" go to the user. Boost allows users to rank their posts higher, but unlike sats, boost goes to the site. This is to prevent users from having upvote parties without paying for it.
Just want to add that it's kind of an experiment. What I'm excited about with stacker news is what I've been calling nanoeconomics - by using very small amounts yet very real money you import the same incentive structure more less as you do in a normal economy. Boost was just the first instance I saw to do something interesting in this respect.
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