Honor as been pretty good so far, it's nice to compare with my friends how much honor we have (though we've noticed, the more you play this game, the more honorable you are and the more honor points you have). I have a couple of suggestions though for what to actually do with honor.
Right now, as an average user's opinion of honor, I only give it if it's worthy, but I hardly register it if it happens and I don't pay it any second thoughts if I get it. Of course I wanna be a good teammate, for once, in a game, I actually care about the results of the match, but after that, I really don't care much about my teammates or my enemies. When I see "you've received 1 honor" I really just close the notification and move on.
I would LOVE to see there being some kind of reward for being honorable, whether that reward is in ip or something else, I have a couple of suggestions.
On the small scale:
1) Try giving small bonuses of ip to a player who has been consistently honored for a week. Say, for example, 50 ip for one week of overall good behavior. You could measure this in a couple of ways: Either you could weigh how much honor versus dishonor the player has gotten and rate the reward there (for now, since there is no dishonor, just compare how many reports the player has gotten?) and then hand out medial rewards every so often.
2) rank the players given their honor levels. This suggestion might actually make the game more fun, especially if you balance it. Say, for example, you have someone who has ten honor points in being a good teammate, well perhaps you could place him with other good teammates. Either way, begin matchmaking based not only on level but honor level as well. This will encourage people to be better teammates because they know they will have better experiences during games.
3) assuming you create a reward for being honorable, let's say that you don't want to make it TOO significant and really don't want to give away nice items or champions. That's fine, what about a new source of currency based on honor points? Creating small items that could only be purchased via how much honor you have. You could make certain skins cost honor or maybe even runes cost honor. Or, for a bigger scale, make an entirely new class of items that could only be achieved by using honor points.
Whether or not you take these suggestions is up to you, but personally, I think this should be your next big goal. Give us a REASON other than people being generally nice, to want to get honor. If you do, I assure you that people will communicate more, have an overall more fun time, and not complain about the game so much. Then perhaps there will be a reason for this system.
Either way, good work, keep it up!