Now this is popping up on wood chips all over my yard. I hit one of the blobs with spray from a hose after it had turned brown. It put out a cloud of "smoke", I assume some kind of spores. What was really interesting was that no matter how much water I sprayed on it, it never seemed to get wet. The spores must have some interesting properties.
They feed on bacteria, fungi, organic matter so this is a good sign of biological activity. I had some growing up on some leaves I added compost tea to. The leaves were perfect in the end though, so just eating the good stuff on the leaf.
"You mustn't be afraid to dream a little bigger..."