Imagine a site like news.ycombinator.com. The browser uses that name to lookup the IP from a specialized server. So for the domain it might have this saved:
A IP = ...1
AAAA IP = ...2
Where 'a' is the type of record. But there are other types of records:
TXT gender = 'male'
So there's a few assumptions here about DNS that are normally true:
1. People are using DNS as a switch board to other services.
2. The values in the switchboard are normally static.
With this setup they're doing something completely different because they're serving back changing values based on the domain. To do this you would need to write a custom DNS server (though the DNS protocol is quite simple.) The reasons this is a clever hack though are as follows:
1. DNS is one of the most widely used and supported protocols. All mainstream programming libraries support it. This includes numerous command-line tools already in operating system. By providing this as a service over DNS it provides an elegant way for command-line tools and libraries to access services with minimal dependencies.
2. It challenges the way the DNS system should be used by tipping the normal assumptions behind its use on its head (direct usage for information, dynamic content for values.) This makes it possible to use DNS directly as an application service rather than as a switch board operator for regular internet services.
3. DNS is so integral that a complex integration wouldn't be needed to add it to existing software. A DNS request is arguably more straight-forwards than a typical web API. Chances are this also has benefits for censorship resistance, too.
All in all a clever hack.