In deadwood, it is common for fungi to decompose more organic material than they directly consume. This is because fungi engage in extracellular digestion, producing enzymes to break down the complex material of deadwood into simpler compounds. During this process, nutrients in the wood are released for the fungi and other organisms in the surrounding ecosystem.

The rich microbiome developing on deadwood can also contribute to decomposition and nutrient release. The diversity of microorganisms colonizing deadwood, including various fungal species and bacteria, enhances the efficiency of decomposition and nutrient release.

Deadwood decomposition plays a vital role in the ecosystem by recycling nutrients and making them available for the growth of new plants and organisms. While fungi utilize nutrients for their own growth, other organisms also benefit from the released nutrients, contributing to a rich and diverse ecosystem.