Ok lets just be clear here about gear ratios.
There are gear ratios for centrifugal clutches, which really really do matter a lot
Then there are the same ratios for larger tire karts that 'conflict' with the advice most commonly given out for centrifugal clutch driven karts.
The 6:1 ratio is golden, unless you have large tires, and then its still OK with the right torque converter and engine.
So the 40 series torque converter with a large engine (not the 5-7hp, but a 9-13 hp engine) can be geared with 22" tires to 40 mph with no problems whatsoever. It will take off the line fast, and accelerate well, climb hills etc...
Just kind of compartmentalize ratios into 3 categories for 'fun karts', w max speed as a guide:
1) centrifugal clutch:
shoot for 25 mph max
2) 20/30 series w 5-7 hp engines (driven unit size also plays a huge factor here in addition to the gear ratio)
shoot for 35 mph max, ~28 mph is ideal
3)40 series w 9-13 hp engines
40 mph max
That go kart is a bone stock manco dingo. nothing has been changed. The gear ratio is fine and it will actually take off really fast and climb hills (unless the tecumseh is shot).
hope that makes sense, just need to keep it clear that the big engines w/big torque converters make up for the low end by just piling on the torque, and that is why they can handle the big tires too!
Also, im 99% sure that the belt is shredding because your drive and driven sheaves are rusted. Good thing it is an easy fix..... but it could be spaced out differently, if the drive and driven arent lined up, or parallell, it will wear on the edges of the belt and fray them out too.
Also, just to kind of give a visual of what i am talking about:
The small kart has a 6:1 ratio w/18" tires, goes 33 mph and just has too much torque w/13 hp (with the same ratio, with 30 series and a 5-7 hp engine it would go 35 mph)
the larger orange kart is geared exactly like the dingo in question, (orange one has only 11 hp by the way), and 22" tires so the kart that darian has should perform better than the 2 seat orange one because it has 1 more horsepower, and is less weight.
https://youtu.be/fzNVqrl789o
I wish the video wasnt so muddy to show it, but you get the point. Big engines that go on big karts with big tires are really fun, and will work just fine