Found these tiny cups filled with little grey ‘eggs’ growing in the mulch. They are smaller than a dime. Anyone know what they are?

cup acts as a splash cup, meaning that when a raindrop hits the cup, it causes the peridioles (‘eggs’) to be ejected from the cup.

This method of dispersal relies on the kinetic energy of falling raindrops to effectively scatter the spores over a wide area. Once ejected, the peridioles are often carried further by wind or adhere to passing animals, increasing their distribution range.

Bird’s Nest Fungi thrive in environments rich in organic material, such as mulch