“Technically” you never have “unarmed” fight in the game.
When you are fighting without weapons, the system uses two hidden weapons called “LFist” and “RFist”.
That is not just a “Semantic Jab”.
Any weapon in terms of “visual” is an object that shows up in your hands or other place (attachment points), in a certain way, and have a sequence of actions that are like “emotes” animated to perform an action.
The weapon itself does not “physically” do anything, the game just takes position and “step of the combo” into consideration and compute the damage or lack thereof.
So, from the point of view of the game, there is no difference between fighting unarmed or armed, that is just a work making animations. Anyone can make in a mod for example a bunch of animations, use a weapon that has no model, just change the hand pose, and there you have some unarmed combat.
Will it be any good ? Probably not.
Most games with the type of combat this game has cannot feature some elaborated hand to hand combat, as it cannot really make grapples and throws very well, and the game does not have enough IK to make it look cool by knowing “where you punched” to react accordingly.
Rather have better blade combat than make an exercise of futility trying to make some half baked kung fu knock off.
And as much as you might see some games around “simulating it”, it is not that easy to make a game that might have 10, 20 characters fighting to register every single hand, foot, elbow and knee to be accounted for and processed in a fight. If you think it is, be my guest and get a simple “realistic walking” code to run in the game. I mean, full IK which reads the feet of the character, calculate the balance, and feature the realistic reaction of the character through rocky or wet terrain. That for one character is the same as asking the game to read all the “visual” and find out how to make combat works on that.
And dont start with the “server” game. If that is already a brick for a solo local game, imagine what it is to wait all that processing to go back and forth, because servers dont render image or calculate rendering, so you will require it to, and therefore, there will a ton of data to go back and forth.