I need to make some decisions.
Should I go with Tekken style parrying, or Smash style?
Tekken:
Pros:
takes a bit more skill to use
Increases skill ceiling
You can reliably get damage off of one
Feel satisfying to land
Cons:
Would Harder to scrip(I think)
Would have to make a high and low block system
Might be somewhat spammable
Only good for 2/2.5D fighting games

Smash:
Pros:
Easier to scrip(I think)
Looks cool
Gives iframes
Can do it multiple times (for multi-hit attacks)
Beginner friendly
Cons:
Cant reliably get damage off of one
Might still get hit if you time it wrong
Kinda spammable
Would have to figure out the perfect blocking system.

The only way I can see doing both would be to make a 3D to 2.5D fighting game.
Kinda like Pokken Tournament. It has field phase, which is 3D, and dual phase, which is 2d.
If you don’t know 2.5D is like Tekken. 2d style fighting game, but on a 3d plane you can move around in