It uses your browser location to build the data, bootstrapped with Mechanical Turk workers around the world. It has one feedback loop, where if you use the JS library it will give you the users location if they deny browser location (if we have the data...) and if they do share location, then we update the database (but throw away the last part of their IP address).
There are two or three other loops where we could build more data (which you can get here https://www.open-geo-ip.com/data/download ).
I'm probably going to do a small kickstarter to pay for some cleanup and expansion work or just kill it if that fails to get funded. Any ideas appreciated on things to do with it.