(A) In pluripotent conditions or in the absence of RA, the canonical Wnt signaling pathway activation culminates with Tcf1 and β-catenin binding to selective Wnt response elements (WREs; white boxes) and induction of the transcription of genes necessary for pluripotency/stemness.
(B) In presence of RA, the noncanonical Wnt signaling pathway is activated and its downstream effects cause a reduction in the expression of Tcf1 and in the binding of Tcf1 at specific Tcf1-specific WREs. This reduction in WRE promoter binding, along with increased expression of Tcf3, enhances the ability of Tcf3 to bind Tcf1-selective WREs, reducing the transcription of genes necessary for maintaining the pluripotent/stem cell state. RA allows the binding of Tcf3 to WREs that promote the transcription of specific genes that are expressed in a differentiated state (black box).