LIP-6: In-protocol coverage proposal

Chorus One recently provided reimbursement for downtime that cost stETH holders to forego some staking rewards they otherwise would have received. It seems like your proposal is the same idea, just slightly different and maybe a more formal process. Would you agree or do you view your proposal as something new entirely?

I actually don’t understand why burning stETH is seen as the best method to give value to other stETH holders. If stETH is intended to represent a 1:1 claim on the ETH locked up in the staking contracts (I think it is anyway), why is it better to break that relationship by burning stETH as opposed to sending funds directly to the staking contracts themselves? Would stETH be rebased following the burn so that existing holders eventually see an increase in stETH balances proportional to what was burned?

I could be missing something very obvious in both the example I shared and your proposal…