So I see starbound has a github repo containing lua functions https://gist.github.com/jordoh/7864154 and I'm noticing that people are actually implementing them into the game, but I have no clue what folder i have to put into to implement them into the game myself. What am I missing, and how can I tap into these functions?
Lua can be used by certain entities inside of the game. Most notably "wire objects" "monsters" "npcs" "tech". If you examine for example one of the door objects you'll see inside one of the JSON files a script section that contains where the script is held, start there in your research. The API and modding itself is still very fresh so the'll be more documentation as it comes out.