that's normal... not rotting per se (everything is rotting when you get down to it, its just a matter of rate). fungus on mopani is *very* common. mine was white and stinky for about 3 weeks. some plecos will keep it clean, other's don't care for it. but it *will* disappear on its own one day. keep up the water changes, and *don't* scrape off the fungus unless you like making your water messier than it has to be... leave the fungus confined to the wood and it will work itself out soon enough. as for your fish dying,... no clue there. i've never heard of anyone linking driftwood fungus (white fuzz / slime) with fish death, but I can't say it's not possible. Another option is to soak the wood in a separate container from your tank, or boil it, to help it water log faster (but boiling starts the microorganism colonization over again, and the fugus will come back as strong as ever. i'd just leave it alone, and don't scrape stuff off of it until it's definitely algae, and even then, just get a pleco, otos, or shrimp and it shouldn't be a big deal. best of luck!
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