Mostly prevents you from sleeping. Messages are configurable and data-driven.
Note: Setting the spawn point with beds is not modified.
Why don't you look at the Gallery and have a look at some of the included messages? Don't worry, there will still be plenty to explore yourself!
The mod itself can work server-side only as well if the necessary translations are provided by a resourcepack on the client.
data/insomnia/keys.json{
"translation_key": "true",
"translation_key_allows_sleep": "false"
}
This is just the normal translation behavior of the game. There should already be sufficient documentation about this on the internet, but in case you require help feel free to join the discord and ask in the #insomnia channel.
In case you'd like to override the default messages either provide new ones with the same ideas or remove them by mapping their value in the data file to null

Prevents you from sleeping while simultaneously making fun of you.