King Richard One of the interesting things about design is how different facets intersect
In this case, because your life total also cant change, that damage has any other effects that it may have aside from causing you to lose that much life (such as effects from lifelink or infect) and triggers and effects can see that damage was dealt even though your life total didnt change

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That said since the creatures at a very basic level improve when they come back, this mechanic can be a little tricky to balance and design extensively for