So this project is called "OnStellar" but it is running on the steem platform and has nothing to with the Stellar network?

Might be less confusing to use Stellar tokens, or call this "OnSteem".. just sayin.
It is running as a Steem subchain (Similar to how an ERC-20 works with Ethereum), but will be transfered over the SMT (Smart Media Token) in the future.

I think this is helping people be introduced into cryptos through something they are already familiar with, which is huge for the community.

Typically when I talk to non-crypto people, they usually ask how does it work

, which is a hard question to answer if they aren't already familiar with it. However, when given use case examples, they get it. It's kind of like asking people to explain how the internet works. Most people don't know how it works but they know what they do on the internet.
Precisely! That is something that really excites me personally about this project, the potential adoption of blockchain by a completely new audience
