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This adds a Code of Conduct file to the repo.
How Is This Different From The Uploading Guidelines?
This is a document for the community as a whole, not just projects on the server. This tells contributors and anyone who uses it not to make hateful things with it.
Will This Limit People?
No, this is used to try to not give PenguinMod a bad name. For example, if a member of the community does something really bad, PenguinMod may be given a bad name since the person came from there, all this file does is set guidelines for how they should correctly behave with this free service.
Can We Modify It?
Yes, if there is something you want to change, you can change it.
Quoted from opensource.guide:
It also adds this little thing to the repo to let people know about it: