[Varyon]

Damage while being grappled should probably be reduced in most cases. For most grapples, you aren't going to have the room to manage a proper punch or kick, or even a stab or slash, even if the limb in question isn't actually grappled. IIRC, Technical Grappling gave a general reduction to ST from being grappled, and honestly that would probably be sufficient. Alternatively (or additionally), if using TG or FDG, consider allowing the grappling character to spend Control to reduce the damage of a strike by the grappled character, as an inverse of the option to use it to increase their own damage.