I would change the contest to have different categories and only one winner per category. While I applaud the kid for loving to read (when I was his age, I started reading all of Stephen King's novels and would finish two to three in a couple of weeks), the concerning thing here is that everyone else is giving up and no one can keep up to what he's doing. We don't know if this kid's a genius or banned from doing anything else at home but read. Having multiple categories at least gives a shot to others who might not be as gifted or even have time like this kid does.
On the other hand, I really think we should also cut out the "Everyone gets a trophy" phase for just participating. We're doing nothing here to prepare our youth for failure in the future.