All proxies should be running traces to reduce network footprint.
Attacking client needs them for localized hit fx…audio and visual.
Simulated proxies needs them for localized hit fx… audio and visual. If they aren’t reproducing the same hits as the server then there’s something wrong with the overall simulation. Outside of Floating Point Precision errors they should be getting roughly the same result.
Server needs them for dmg. It itself should not have to replicate anything beyond telling the hit client to play FX.
Player Health is a player state replicated value. It should be a RepNotify. The OnRep Function would update the hit clients UI.
The Apply Damage event on the server can call an event (On Owning Client) to execute the needed FX chain.