The remarkable degree of morphological diversity and evolutionary convergence exhibited by mushroom-forming fungi (Agaricomycetes, Basidiomycota) has frequently baffled mycologists. A suitable theoretic framework to study fungal evolution would involve little and minimal genetic changes to trigger rapid and substantial morphological divergence. An example that clearly illustrates this convergence in fungal evolution is sequestration - the rapid and frequent evolution of truffle-like fruiting bodies from mushrooms. Paedomorphism, a heterochronic shift in which the development of a species is decelerated in regard to its ancestor, has been invoked as a possible explanatory framework replacing the classic adaptationist, gradualistic approach. Between different sequestrate clades, neotenic and progenetic origins can be discerned, giving rise to contrasting morphological and phylogenetic patterns. In this project, we will investigate the validity of this theoretic framework in light of sequestration in Agaricomycetes. We will test the different predictions of this theory, focusing on differences in diversification rates, morphology, selection strategies and genome evolution. Our findings will help us understand how fungal species can rapidly adapt to changing conditions. Furthermore, we will improve our understanding of the genomic basis of this adaptive potential, especially transposons and associated DNA methylation patterns.