It stops you from sending 1 ram as a fake and instead makes you send at least X amount of villagers therfore you can no longer send 200+ fakes with your nukes and nobles because all it would do would be weaken your nukes/defence.
The figure is 1% of your total farmspace used up on troops, for example if you have maxed out your village and have 20000 farmspace used on troops then your limit would be 200 farmspace minimum.