Terpene synthase; part of the gene cluster that mediates the biosynthesis of the trisnorsesquiterpene discodiene which has a function during later stages of multicellular development, during the transition from fingers to Mexican hats (PubMed:27790999, PubMed:31063135). The terpene synthase tps8 converts its substrate farnesyl diphosphate (FDP) into the bicyclic sesquiterpene alcohol discoidol (PubMed:31063135). The cytochrome P450 monooxygenase cyp521A1 then catalyzes the oxidative degradation of discoidol to form the trisnorsesquiterpene discodiene (PubMed:31063135). Sesquiterpene biosynthesis. Expression is almost undetectable in vegetatively growing cells (PubMed:27790999, PubMed:31063135). Small amounts of transcripts accumulate between 4-8 hrs of development, continue to accumulate until they peak at 16 hrs, and decline thereafter (PubMed:27790999, PubMed:31063135). Contains several highly conserved motifs that are important for catalytic activity including the aspartate-rich 'DDxx(x)D/E' motif and the 'NDxxSxxxD/E' motif, both of which are involved in complexing metal ions to coordinate the binding of the isoprenyl diphosphate substrate in the active site. Impairs the production of discoidol and discodiene, and leads to delayed multicellular development. Belongs to the terpene synthase family.