We started with creating a style guide for the system. Luckily for us this one had already been done. All we needed to do was implement any new changes or elements to the system and link the existing style guide.
After analysing few of the established design systems we understood that most of them are doing categorisation in terms of colour/modes/colour identities as Per their requirements.
Thus we started understanding Etta requirements of colours first to how its made and how we can make it efficient than now.