Its a 68k emulator for OS X similar to what older PowerMac System/OS versions have. It is able to run old programs without classic as if they were native. For now it is only able to run simplest kind of applications.
I dont have complete Toolbox emulation (yet). There is 68k processor emulation and wrapper which translates application’s toolbox calls to the Carbon framework calls. Some deprecated functions and features are implemented so that the applications are able to run.