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Technically, soil is primarily decomposed rock (over the eons) with often 10 to 20% decomposed organic matter. Mulch is pure organic matter. To speed the decomposition of mulch you need moisture and oxygen, as stated above, but you also need nitrogen. Mulch is mostly carbon, while useful organic matter is a mixture of nitrogen and carbon molecules. So, add a little bit of nitrogen containing fertilizer to speed up the breakdown. Most of it will be minimized in a year.
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