I have a ponytail palm tree that is about 20 years old. It was abandoned in a house for two years, was shriveled and dry, and surprisingly it bounced back. That was 12 years ago, but this winter the plant started to to grow some sort of fungus on the rot ball, and as soon as I think I have it under control the trunk starts sprouting shoots all over it. It has never sprouted anything, and now I'm counting about 50. What is it doing? This is an indoor plant. Any feedback would be greatly appreciated. Thank you.
It sounds like your plant is producing 'pups'.
These can be removed and propagated into new plants.
Here are some links to help you.