Sponges aren't necessary at all. Depending on the size of your crabs they may require deeper pools. Many of us use tupperware containers. Just be sure the crabs have a way out - be it craft mesh, rocks, plastic plants, or whatever.
If you're concerned about the sub you could wet it with dechlor water, then bake the excess moisture off. (Kind of labour intensive I suppose, but there's not a huge amount of sand in a ten gal.)
Whether a likely danger from sub with chlorine/chloramine in it exists... With chlorinated water the concern is damage to gills or (I believe also) uptake of chlorine into the blood via the gills. Its notable that crabs can drink from moist porous surfaces. But I really have no idea if the chlorine/amines can pose risks in non-aqueous form. (Like if some amonia by-product forms at a high enough concentration that it might pose a risk.) They do ingest their sub. I think I'd prefer safe over sorry myself if I couldn't find a definite answer - because if there were somehow a poisoning risk, crabs can live a very long time & be slowly poisoned by toxins. (Hopefully someone who knows more than I can conjecture will chime in!)
And the lid is a great idea - humidity can be a pain to maintain with a mesh lid, and making one like you are will save headaches later.
Do invest in a quality marine salt... can confirm the hermit crab water conditioners are junk, and salt/trace minerals found in the salt water are super important to good crab health.
EDIT: Never mind about chlorine in the sub - after searching tap water, I found a thread where wodesorel explained it will break down safely due to the acidity of the cocofibre. So no worries.
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