System and method for managing performance between multiple peers in a peer-to-peer environment

A method of dynamically balancing a load on a fully connected grid (FCG) in a peer-to-peer environment includes determining if a first number of peers connected in a first FCG is greater than a preselected limit. If the first number of peers connected to the first FCG is greater than the preselected limit, then partitioning the first FCG into two or more subdivided FCGs, wherein each of the subdivided FCGs includes at least one peer connection that was previously connected in the first FCG. A subdivided location identifier can also be published for each respective resource included in each peer connection. A system for dynamically balancing a load on a fully connected grid (FCG) in a peer-to-peer environment is also described.