Mushroom Grass Seeds

Mushroom Grass Seeds are a type of Seed that has a chance to drop from harvesting Glowing Mushrooms, and can be used to grow your own Glowing Mushroom farm. The seeds can also be bought from the Dryad NPC when in a mushroom biome.

Requirements
Mushroom Grass Seeds must be planted on Mud Blocks and can be grown both above and underground. Once planted the mushroom grass will begin to spread and grow Glowing Mushrooms.

Grass
Mushroom Grass spreads much slower than ordinary Grass or Corruption, at a speed comparable to Jungle Grass, which is only 3-5 tiles per day for each continuous section of mud blocks. The blue grass, as well as the mushrooms that grow on it, give off a nice level of light; less than a torch but enough to see clearly (when placed against a solid wall, the light will penetrate 2 solid blocks).

An interesting thing to note is that Mushroom Grass appears to spread quicker above ground.

Giant mushrooms
Giant glowing mushrooms can also spawn in player-grown Glowing Mushroom farms. They also require the same amount of vertical clearance as trees: 15 tiles.

The requirements for trees means less mushroom yield, since mud strips can't be placed densely on top of each other with just 1 tile of clearance as usual. Nevertheless, trees are aesthetically pleasing, have a high chance of dropping more Mushroom Grass Seeds, as well as multiple glowing mushrooms each, so they may be worth the trouble for some players. Giant glowing mushroom must be chopped down with an Axe. The giant glowing mushrooms are the easiest way to obtain mushroom grass seeds and if the ceiling is made large enough in a glowing mushroom seed farm, they may grow by themselves much more easily.