I have absolutely no idea what's inside it, it just does it's job. If you put it at the beginning of your pedal chain it will reduce gain, because it is like adding another volume control to your guitar. At the end of the chain where I have it now it doesn't take gain off from my overdrive pedal 'cause it's an extra volume control for the entire line of pedals as well as the guitar. I don't think there's anything special about the pedal other than where it's placed.
Sorry, I probably should have made clear that it's coming *after* an overdrive pedal.