it seems to me like one of those mods where the best course of action is to do nothing and wait for your opponent to accidentally dq themselves. making hands dq is a really ballsy move that i haven't seen pay off yet very well honestly. not that there aren't fantastic applications for that sort of thing, i just haven't seen it done super well yet. even odlov's grappling mod where he did that wasn't that fun to me, imo.
i'd try focusing on what kind of gameplay you want to see - what do you want to add to grappling to improve it or introduce something novel? how do you think you can create a convincing fusion of grappling and striking? what do you have to change, tweak, or tune to make that happen? always keep the goal of "what kind of gameplay meta do i want to see in the end product" in the back of your mind while you're working on a mod. it'll keep you focused and always return a better product when you have a clear idea of what you're shooting for.
just my two cents