... Only when using the ISP's DNS. The point of the project is to locally catch .p2p requests before they hit a DNS server and do the lookup locally. (So they can't be filtered, categorized and reported.) The local table would be provided by what appears to be force-encrypted BitTorrent traffic.

"According to the project’s website, the goal is to “create an application that runs as a service and hooks into the hosts DNS system to catch all requests to the .p2p TLD while passing all other request cleanly through. Requests for the .p2p TLD will be redirected to a locally hosted DNS database.”"