I got this tiny sponge on some gulf live rock a couple of months ago and somehow it's still alive. Is it about to release some little ones? I can't think of anything else it would be doing, but I couldn't find pictures like this online.
Congraduations! Thethys sponge species, beneficial. They can move themselves around with those filaments and will bud off babies from them as well. It's been observed the babies can grab stuff and digest it while still attached to the parent.