Yes, project is still alive, and might be in for a big community project :-)

For those not following on GitHub it is hard to stay up with development activity, one could even think the project has stalled, but that's far from reality :-)

During summer of 2017 we had one Google Summer of Code student assigned to Destination Sol, which got part of our Gestalt game library applied to DS, allowing modules to work properly (real modding, woo!) - there are even several actual modules adding new factions and ships working, adding more content to the game.

For 2018 we had a promising GSOC proposal to finish implementing Gestalt for game logic, content, and eventually multiplayer, but didn't end up with enough slots from Google to fit it. Instead we're considering a similarly structured community project, which might also get into better staying on top of our social networks, web presence, Steam, and so on.

Read more in our dev forum - there'll be a meeting this coming weekend to discuss further

https://forum.terasology.org/threads/summer-of-code-destination-sol-community-project.2165/

We are also on Discord among other places. Invite: https://discord.gg/4uKbB8J