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[Zdenka]

Here's what I think Gun-knuckles should be like(The Parts, not how It looks like coz It's obvious It's a normal H2H Weapon :P) (>>[Concept]<<)

The Explosion should be a Spread Explosion, like Mini-Bombs. Imagine punching the enemy with a boom! and maybe Time your attack to deal more Damage! >:P Add Materia and you're more Awesome than ever!

If i recall correctly, Bubblegum Crisis Tokyo 2040 had suits where they had bombs in their knuckles that exploded when they punched something.