Archaeocytes are specialized cells found in sponges that play a crucial role in various physiological processes, including digestion, repair, and reproduction. These versatile cells are capable of transforming into other cell types, allowing them to contribute to the sponge's cellular organization and overall function. Archaeocytes serve as the main form of totipotent stem cells in sponges, demonstrating their importance in maintaining the sponge's homeostasis and responding to environmental changes.