I dabble with a free-to-play game over on Steam called Tera. I'm enjoying it so far, but apparently tomorrow's update will contain a piece of software called Xigncode3. I guess it's meant to be antibot/anticheat, but people are bringing it up in an ominous manner similar to Denuvo. Do I deal with it or just uninstall the game?

Just wait for the update to release but don't update the game yourself and read player feedback to see if it's safe to update or just uninstall it

Well, there you go...

I have experience! I can help! ...Never mind.

I'm not saying Xigncode 3 is a program similar to Denuvo. I'm saying people are mentioning it in an ominous tone similar to how they talk about Denuvo. Honestly I'm not sure what to believe.

Postpone* the update, take a week off and see what happens.

*Should be located somewhere in Steam settings.

Honest answer: Never heard of it.

Steam allows other DRMs besides their own or do they make one sit on top of theirs?

Hmmm, looks like it's been around for at least 3 years:

https://www.reddit.com/r/DFO/comments/306vq7/okay_i_pretty_much_confirmed_it_xigncode3_is_a/