My thought was to use the RiSC-16 ISA as the starting point:
https://user.eng.umd.edu/~blj/RiSC/RiSC-isa.pdfThe goal is forward source compatibility with RiSC-16, but not complete binary compatibility due to the extensions.
This ISA only allows eight instructions, so these instructions are exactly the same as their RiSC-16 equivalents: LW, LUI, SW, ADDI, BEQ, and JALR. Missing are ADD and NAND which I think could be replaced by a single instruction.
The ALU RRR-type instructions have bits 3, 4, 5, and 6 defined to be zero, but that opens up an expansion opportunity. Like the PDP-8's OPR instruction you embed additional CPU control signals into the instruction. This allows you to replace the ADD instruction with the ALU instruction which uses the RiSC-16 ADD instruction format, but the four unused bits are used to encode the ALU operation. Two are required for the base ISA: ADD and NAND. If you use %0000 for ADD that instruction is bitwise identical to the RiSC-16 ADD instruction. The value %0001 could be used for NAND which completes the original RiSC-16 instruction set.
That also leaves fourteen additional ALU operations which could be encoded as the ALU is extended with new functions. Some candidates: ADDC, SUB, SUBC, AND, OR, XOR, ASL, LSR, ROL, ROR, and XCH (swaps high and low bytes). I know some RISC architectures don't have carry flags, but ARM does, so it's not unheard of.
There's also an unused opcode %010 which was formerly the NAND instruction that could be used for a new instruction.
My thinking is that Bruce Jacobs and Peter Chen probably know more about designing an ISA than I do. Also, there are existing implementations of RiSC-16 that could be used as a reference architecture. So this would be a better starting point.