This project was originally conceived circa early 2007. I had just begun a new job at Logitech. We needed some geographic DNS redirection features for the project I was working on and when I surveyed the landscape at the time I didn't find any acceptable options. The available open source options (e.g. a trivial BIND patch) were insufficient on features, and the commercial options (e.g. F5's hardware solution) were prohibitively expensive for the scale of the project in question.
The first internal drafts of this daemon were written in pure Perl using the POE framework and Net::DNS for packet-mangling. It didn't even support full authoritative service, you simply delegated a hostname off to this server (e.g. "www") and it could do geographic redirection of A-records for that one hostname. It worked reasonably well and was even deployed to production successfully in this form.
However, two key issues were apparent. First, the performance and reliability wasn't great, and DNS really needs to be performant and reliable. Packet captures were showing a small percentage of totally dropped requests, and another small percentage of very slow (e.g. ~200ms+) responses before even accounting for actual network delays. I did some extensive debugging on these issues, but ultimately I was unable to resolve them completely and had to chalk it up to "Hey this software is running on top of a huge complex stack of ever-changing and often slightly-buggy CPAN modules in a dynamic scripting language."
The other issue was that operating via delegation didn't allow for geographic redirection of the domain's root name, and of course I couldn't move the whole domain to the special server because it didn't support all of the other basic features of a normal authoritative DNS server.
To resolve these issues, I re-wrote the core code in C and added all the basic features for a full authoritative server. I left the config-file parsing in Perl, which generated a binary blob the C code consumed for runtime (containing binary structs for all of the config and zonefile data). Once that was working reasonably well and deployed to production at Logitech, I talked it over with my boss at the time (hi Dean!) and open-sourced the code. This lead to the first public release of the code (0.02) in mid-2008.
Late in 2009, I started working on a major refactor. The primary goals here were to move the configuration parsing into the C code like a normal daemon, add a ton of new testsuite coverage (100% branch coverage of the core packet parse/generate code was the goal, which was achieved), and to move the geographic redirection code out to a DSO-based plugin so that other techniques could be experimented on without touching the relatively stable core DNS code. This effort finally lead to a new stable release series (1.0.x) in April of 2010.
The rest is all relatively well-documented in the NEWS file.