CSS is fine. You can test the blinking with single template node.
<style>
:root{
--remote-button-background:red;
--remote-button-foreground:blue;
}
.remote-button.blinking{
animation:blinkingAnim1 0.8s infinite;
}
@keyframes blinkingAnim1{
0%{ background-color: var(--remote-button-background); color:var(--remote-button-foreground);}
50%{ background-color: var(--remote-button-foreground); color:var(--remote-button-background);}
100%{ background-color: var(--remote-button-background); color:var(--remote-button-foreground);}
}
</style>
<div class="remote-button blinking">BUTTON</div>