Earlier quoted context omitted.
How does it compare to DNSSIG? ( http://dnssig.org )?
I think DNSSIG is (at least designed) more for relationships among DNS servers and especially to protect the integrity of the DNS records, while this project seems more for securing the client-to-relay channel, with (I guess) focus on confidentiality.
Both focus on integrity. Read the dnscrypt project description and grep for "authentic", then grep for "encrypt".
DNS confidentiality is useful when running an IP-over-DNS tunnel like iodine, not so much in combination with other protocols.