It's mysterious to me as well, but yeah after looking through the code briefly I think you define macros in the keydoggerrc file, and then keydogger watches the clipboard for triggers and responds accordingly. I love the idea, still a bit too much in the dark on the implementation to have an opinion though. Given the highly sensitive nature of the clipboard, I appreciate how small the app is because it's auditable.

OP: Cool project, thanks for sharing!