Best way to balance it is remove it from the game. But seriously, it needs a much longer cool down. And also, remove all damage resistance. And make it damage the user like 50 points. Then they can't use it as an Oh SH*T Button when they are wounded! Macros and scripts are making it impossible.
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if you use the grenade to shatterdive, your grenade cooldown should jump to like 3 minutes.