Dynamic-Xchange | DXSynergy Articles - Why Are OutXchanges Slow? Part 1
| Why are OutXchanges Slow? Part 1 |
The Million Dollar question!
by Zachary Boyd
OutXchanges have been slow since the end of July of 05 and there are several reasons for that. Many people place the blame directly on DXSynergy for the current DXSynergy economic situation, which is true in part that they are to blame, but not entirely. Let me explain.
1. Over-inflated Portfolios
2. DXSynergy preparatory changes
3. Immature system
4. Sub par Console Operations
5. Ignorant members
The first reason and primary reason that OutXchange speeds took a plunge was because people had over-inflated their Portfolios by abusing the DXDebit that was allocated to them.
In May 05’ when the new system introduced 24 hour sessions as compared to the 6 day sessions that were prior, many people took advantage of a loophole that had not been foreseen by DXSynergy. This loophole permitted people to over-extend the borrowing power of their DXDebit and many took advantage of this to increase their TDV everyday by reinvesting their DXDebit Available towards purchasing more digots. They would then do this day after day while seeing their TDVs grow 5-10 times the original amount in a single month! I myself did this, and took $1100 and had inflated it to a TDV of about $25K in less than 3 months. That is a gain of almost 2500%!! That is ridiculous! What business can survive giving away money like that? Maybe Bill Gates? Even he would go broke eventually.
There were no restrictions at that time, so one could borrow over and over on their original principal and build their TDV to over-inflated values. During the six day sessions, this method worked fine because you could only reinvest your DXDebit once every six days as compared to every 24 hours now. Consequently, they were building the value of their Portfolio six times as fast as before. Why DXSynergy did not foresee this happening puzzles me, but it is one of the major reasons why we are still recovering from the imbalanced condition that we are in. DXSynergy had strongly suggested that people don’t over extend the credit or TDV of their portfolios, but of course nobody heeded and the frenzy and just continued on. Finally, DXSynergy realized that mere suggestions were not going to work, and decided to crack down on the situation by establishing several penalties and changes that would force people to stay within bounds.
Unfortunately, the destruction had been done, and DXSynergy decided that with the new changes they would let the system gradually correct itself rather than step in and change things drastically overnight.
With the new changes that include forcing people to pay for OA fees from Incoming Balance, and penalizing those who are above the 50% DXDebit to TDV ratio and pay OA fees from Available Balance, the system is forcing people to only build their TDVs in conjunction to the balance of the system. For instance, as OutXchanges have been slow due to the imbalance of too much supply of DXG to the demand of other e-currencies, one cannot withdraw their DXDebit to then InXchange to purchase more digots any faster than the rate of current exchanges. As OutXchanges speed up, one can then build their portfolio faster since you can then OutXchange and then InXchange your funds back into your Incoming Balance then to Reserve Balance to purchase more digots. Consequently, you can only build as quickly as the system can reasonably handle, and not anymore. This is good for the system, and will restrain it from falling into the same dilemma again in the future.
| DXSynergy preparatory changes |
This isn’t as big of a factor on OutXchanges as the others, but it still plays a part in how it affects them. As DXSynergy is preparing to roll out the main features and services of their dynamic system, the Portfolio and Merchant aspects of their puzzle are just that—pieces that need to play their function “correctly” within the system. As we have witnessed several changes on how the portfolio and console should be operated, to how digots are to be valued, and even how DXSynergy has more specifically defined what they are; DXSynergy is not so concerned as lining our pockets as they are on having this entire system function as one machine. So as DXSynergy sees fit to change a feature or more to the DXPortfolio, DXConsole, or digot allocations, that may inherently seem to effect speeds of OutXchanges, they are implementing those adjustments for the balance and benefit of the whole system that will be realized when they are fully matured.
That brings me to my next point.
Most people don’t even think about this, but think about how you came to know about DXSynergy. It was because you were told by someone selling a course on the business that you could make a lot of money with the system, right? Not one of you came into this business because DXSynergy themselves actively marketed to you, but through a third-party that was not directly affiliated with DXSynergy. Think about that. The implications of realizing this very fact is huge.
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