I seem to recall reading a discussion about this on here somewhere before - isn't it one of the kyokushin off-shoots from the 1980's* that incorporated a wider range of technique/rules to further the development of the martial art as a sport? Like the ashihara lot, and seidokaikan?
They've been around before mma took off, even in japan. Though techniques were probably constantly added I think it is a little unfair to say they are "geared for mma".
*[Some of them are earlier. Chakuriki "style", for instance, one of the gyms that essentially created the "dutch style" of muay thai used karate as the basis for the martial art, and embraced the techniques of competitive sport martial arts including grappling (mostly standing stuff I imagine) in order to be more complete and realistic. The point I forgot to write in the post before the edit is that the guys that founded these hybrid karate forms felt it was the "future" of martial arts 30/40 years ago. The domination of kickboxing, and the opening of the sport of Muay Thai to the west, by Holland trained fighters would suggest that it was the future, and it already happened 20 years back.
K-1, which through it's tourneys became the world's premier heavyweight kickboxing event was formed by and featured seidokaikan fighters heavily - Hug, Sataki, Kakuda (the top referee with the moustache) and even Semmy Schilt, arguably the top striker in the world, demonstrates the influence of the style.
Shootboxing, the japanese hybrid kickboxing (standing submissions, throws) has been around since 1985. I think there is a link there with the creator of pancrase, the "real pro wrestling rules" fight organisation, as well as the people who created Shooto, which started as a martial art (in 1985) closely resembling mma and whose events eventually turned it into a mma fight promotion. (They got rid of a standing count for knowckdowwns rule a few years ago which was pretty much the only thing differentiating it from mma.) These 'styles' (at least SHooto & Shootboxing) show a difference of emphasis, with practitioners of catch wrestling & kickboxing seeking to learn real complete fighting methods but eventually focusing on different aspects to create competitions.
^That stuff is basically off the top of my head, so it is lacking in detail and possibly rather inaccurate, but look it up if it interests you, on account of me really needing to go and make dinner as I spotted this on getting in from work and am consequently very hungry, having spent my time typing at the keyboard instead of cooking.
A deviation from the subject of Daido-Juku, to be sure, but it is related, especially to your question regarding the direction of martial arts. My resposnse, if it got lost in the above, was that these martial arts were the future, but that was a while ago now and many of them have taken hold in combat sports. As an aside, one of the main conclusions I reached last time I checked up on these Daido Juku guys was that 'Russians' play a major role in competitions. IIRC
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