Definition of Adic-filtration

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I am reading On the Associated Graded Ring of a Group Ring by DANIEL G. QUILLEN and this is the beginning of the article:

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I have no idea what is $\overline{KG}$-adic filtration, as well as the definition of $\overline{KG}^n$ (or $\overline{KG^n}$?) there. Can anyone help?