Allays naturally regenerate 2 health points per second when damaged. However, if an Allay is subjected to constant damage sources—such as drowning, standing on a campfire, or other environmental hazards—and the player moves beyond the simulation and render distance (e.g., set to 5 chunks), causing the Allay's chunk to unload, the Allay's regeneration halts while the damage persists. Upon returning to the chunk after a period, the Allay is found deceased.

Steps to Reproduce (watch video attachment):

1. Place an Allay in a situation where it takes continuous damage (e.g., submerged in water to induce drowning).
2. Move beyond the simulation and render distance so that the Allay's chunk unloads.
   Note: in the attached video I've simulated the allay constantly unloading and reloading, since allays and chunk loaders are often used together in practical gameplay.
3. Wait for a duration sufficient for the continuous damage to be fatal without regeneration (e.g., 30 seconds).
4. Return to the Allay's location.

Observed Result:

The Allay succumbs to the sustained damage during the period its chunk was unloaded.

This behavior impacts gameplay mechanics, especially in setups where Allays are used in farms or systems involving continuous damage sources, like sorting systems.