However, a small percentage of lichens (approximately 10%) are cyanolichens and contain a photosynthetic cyanobacterium instead of green algae,[2] and an even smaller number (less than 1%) are basidiolichens and contain a basidiomycete fungus instead of an ascomycete.

[23] Within the basidiomycetes, Dictyonema is closely related to three other genera of basidiolichens that are also in the family Hygrophoraceae: Lichenomphalia, Acantholichen, and Cyphellostereum.

[3] The majority of the other, non-lichenized fungi in this family are saprotrophic (consuming decaying organic matter) or ectomycorrhizal (symbiotic with plant roots), although numerous species, such as Arrhenia, grow on mosses and derive nutrition from them.

[3] An unidentified species of Dictyonema is called nenendape by the Huaorani people of Amazon jungle of Ecuador.

An infusion made with this lichen is said to cause intense hallucinations, and it is used by the shaman to call upon malevolent spirits to curse people.