A new dev diary by the studio explains the simpler tournament version: "When you play in this new format, both teams will enter. The winner will win, the loser will lose, and both teams are given rewards accordingly. Then both teams are moved back to the lobby where they can enter the tournament queue again."
For those who elect to participate in paid 1v1 tournaments, ArenaNet has listed the rewards that both the winners and losers will receive. The studio hopes to cultivate useful feedback that will be used to develop Guild Wars 2's PvP going forward.