Snowflake is a pluggable transport for Tor designed to defeat IP-based and protocol-based blocking. A user inside a censored country runs a Snowflake client (built into Tor Browser, Orbot, and several apps). That client cannot connect to a normal Tor bridge because the censor has blocked the known addresses, so instead it asks the Snowflake broker to introduce it to a volunteer proxy. Your proxy is one of those volunteers.
The key trick is that the connection between the censored user and your proxy is a WebRTC data channel, the same peer-to-peer technology browsers use for video calls. To a censor, that traffic looks like ordinary WebRTC, which is far too widely used to block wholesale. Your proxy receives the user's traffic over WebRTC and forwards it to a fixed Tor relay (the default WebSocket relay wss://snowflake.torproject.net/), which hands it into the Tor network proper.
This means a Snowflake proxy is not a Tor relay or exit node. You are not carrying anonymized exit traffic to the open internet, and your IP is never the apparent source of anyone's browsing. You are a short-lived rendezvous point between a censored client and the Tor entry point. Because the broker hands out a fresh proxy each time, no single proxy IP is worth a censor blocking, and proxies that get blocked are simply rotated out. A few thousand volunteer proxies make the pool effectively impossible to enumerate and block.
The practical upshot for you as an operator: it is low-risk to run, it requires no inbound configuration on the Tor side, and it directly benefits users in places like Iran, Russia, and other networks where conventional bridges are aggressively probed and blocked.