There is a detailed exposition of address classes and address
validation in https://www.postix.org/ADDRESS_CLASS_README.html#classes.

Instead of rephrasing that information multiple times in the
postconf(5) manpage, I'll just link to the defining text.

        Wietse

The paste below is for senders; the recipient is case is similar.

smtpd_reject_unlisted_recipient (default: no)

    Request that the Postfix SMTP server rejects mail for unknown
    recipient addresses, even when no explicit reject_unlisted_recipient
    access restriction is specified. This prevents the Postfix queue
    from filling up with undeliverable MAILER-DAEMON messages.

    An address is considered "unknown" when 1) it does not match a
    virtual(5) alias or canonical(5) mapping, and 2) the address
    is not valid for its address class. For a definition of class-based
    address validation, see ADDRESS_CLASS_README.html#classes.

    This feature is available in Postfix 2.1 and later.

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