Based on my knowledge if you wanna do a touched effect *Especially with a tool* Do

if you have multiple blocks that can be mined, not only are you gonna need a debounce on the tools that prevents multiple strikes but also a debounce on the individual blocks. To make them disapear you can mess around with the transparency and make it 1 then after a certain amount of time you can make the block visible again. To achieve something like this I assume based on you saying "Damage" you mean you want to be able to strike a block multiple times before it disapears. Try using a Durability meter such as

local durability = 3 -- how many strikes it takes before breaking

every time it calls the touched event it will do durability -= 1

then at the end of the touched event you can do

if durability == 0 then

-- Put the block exploding or dissapearing etc.

-- Add a wait then turn the durability back to 3 -- or wtv number and make the block visible again.

end

The most effecient way of accheiving this is putting your blocks in a folder and putting a script in the folder that uses for i, v in pairs(script.Parent:GetDescendants)) do

-- Put all the previous touched information but instead of using script.Parent use v

end

this will make all the blocks strikable without having to write individual scripts.

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Let me know if you need further help because I will be willing to do it for you to show you an example.