Does Floating IPs work with a DNS server?

I have a DNS server that I host on DO. When setting up a floating IP for it, I get the DNS requests coming in, but they never make it back to the client that sent the request.

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Yes, it works. Hard to guess why you’re having problems. Is the floating IP otherwise working? Is there a firewall? Is the DNS daemon making sure to reply on the proper (10.x.y.z) IP? Double-check and tcpdump all the things, i guess.