Terrarium will be great, you don’t need mister for sure. I’ve never had an issue with low humidity in my 20 gallon, opposite. You will do so much better with a waterproof computer fan to move air around. I keep a couple inches of distilled water in the bottom of mine that serves as a heat sink, stabilizing temperature and humidity. Air movement is vital, and getting the right balance of light.
I have fond rockwool to be one of the better mediums if you want to do a grow wall, mosses love it. The capillary action depends on the height, but it is very easy to water the wall by hand every few days if the water isn’t coming to the top.
Depending on your reasoning for a smaller terrarium, I’d recommend against it. When they are happy they grow very quickly, and it can look and be crowded very fast. There are so many second hand options for aquariums and reptile tank, people practically giving them away.
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