Yeah.. actually this topic refers to a big topic my squadron and not just mine has orbiting around their name and player created lore.
We do it sustainably with sustainable green housing at Para United, a cooperative. Each of us does it differently.
The developer should take care in enabling players to create their own lore, inflate, or how can I say(?) feed the lore with actual in game things.
So will be the banking system which right now is row (inflating value of items does make it possible now) but will be possible with Vanguard with proper banks and that gneerates tons of things already that can be felt directly without "games of words" which most people do not like nor understand as most people I notice with my own experience have zero time for Roleplaying ...
The game of Elite Dangerous has embedded role playing, just to say one: your VOIP does make your voice contextual to the ship and also location you are at (example when you pass through a "mail slot"), but also other things like powers and allegiances should define what one does, in terms of trading and so on...government types.. (of course it's all at player reach and decision if they want to shape their action colors depending on game and faction traits or not...
Anyway... we Para United Winery Distillery have a ParaTerraforming method and would actually green light this idea as it would benefit our lore and we are sure many other factions and squadrons lore and activity of course.
It would be interesting how they develop this idea if FD ever will.
I think that they should not allow terraforming... but follow a sustainable way as terraforming destroys like Colonialism gone wrong (most of times), the alien spieces.
So instead what should be allowed along the let's say "universal protocol by SOL established in year xxxx" a sustainable GREENHOUSING method.
... At least that is the one (published in our lore, check Inara Services) PUWD does follow.
Life from above, in Vino veritas!