Thanks for the question. We agree that pausing or shutting down a protocol are effective mechanisms, and in many scenarios, they may be sufficient.
However, consider a stablecoin system where only the minting key is compromised. Globally suspending all functionality (e.g., transfers and redemptions) could cause greater disruption — and potentially pose a greater threat to business continuity — than the original incident itself.
This brings us to the core motivations behind this EIP:
First, it encourages protocols to pre-define incident scenarios and proportionate response playbooks during the develop or design stage, rather than improvising a blanket shutdown during a crisis.
Second, and more importantly, it introduces an observation layer, allowing wallets, monitoring systems, and dependent protocols to detect emergencies through a common on-chain interface and apply their own policies.
The goal is not to introduce innumerous emergency states, but rather to support the smallest set of meaningful, documented states that are interoperably observable and that a protocol actually needs .
I hope this clarifies the motivation behind the proposal.
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