A. Introduction

I. Basis Activity as SR in the Tron network
In order to be able to establish an explanatory approach for the calculation of the rewards, it is necessary to start with a basic consideration. The basis for the distribution of the rewards to the voters is the income from the activity as SR in the Tron network. It is therefore advisable to consider the distribution mechanism within the network. In order to record the further distribution and the switch on Terc in the following step, we use a modell, which represents the rewards as layers/levels. Starting with the distribution of the rewards by the Tron Foundation.

II. Shift model
Due to the complexity of the distribution mechanism, an explanatory approach with different levels is appropriate. Figure 1 shows these levels. In the further course of this article, the areas are discussed and a classification in the overall context is made.


B. Levels of the model 

I. Revenue Tron Europe as SR
In order to evaluate and understand the income as SR, it is recommended to take a look at the distribution logic of the Tron Foundation. After this, the Rewards are calculated and distributed as follows:
The rewards are made up of 2 different sources. The first source is the income from the so-called „Vote Rewards”.
• Key data: „Vote Rewards”: 160 TRX approx. every 3 seconds with 20 blocks per mi-nute. Divided among the first 127 SR/SR partners.
This results in the following formula for calculation:
• 160 TRX * (20 blocks*60 minutes*6 hours)*4 distribution rounds. This formula gives a total of the „Vote Rewards” of 4,608,000 TRX a day.
Second source is the Block Rewards.
• „Block Rewards”: 16 TRX approx. every 3 seconds with 20 blocks per minute. Distributed among all 27 SR. – This results in the following formula for calculation:
• 16 TRX*(20 blocks*60 minutes*6 hours)*4 distribution rounds.
This formula gives a total „Block Rewards”; of 460,800 TRX a day.
In order to be able to represent both sub-areas in one formula and to see what total amount is available for the distribution to the voters, another premise is missing. This can and is determined by each SR itself. Each SR must determine what percentage of the rewards they wish to give out to the voters. 80/20 are stored as standard. This means 80% of the TRX received is distributed to the voters and the remaining 20% remains with the respective SR. This is where Tron Europe comes in for the first time. The 80/20 stored in the standard system are replaced by 100%. For further understanding, it is now elementary to understand that the 100% TRX are not paid out as TRX, but only serve as the basis for the calculation of the Terc payment on the 2nd level of the model.
The „Block Rewards” are not taken into account in the calculation. This allows Tron Europe to keep the rewards constant even if the SR status is lost. In addition, the „Block Rewards” can be used to support the project platform or to promote the projects on it. In the long term, this should provide significant added value for the community. For Tron Europe, this results in the following formula:
160 TRX * (20 blocks*60 minutes*6 hours).
The next step will be the share of Tron Europe in the total SR. This can be viewed on the page www. tronscan. org. Below is a numerical example with a current share (as of 12. 01. 2020) of: 1. 28%
• „Vote Rewards”: 4,608,000*0. 0128 = approx. 58,982 TRX,
• „Block Rewards“: will not be considered. – Total Rewards : 58. 982 TRX
The amount of 58,982 TRX is now used on the 2nd level as a basis for calculating the terc to be distributed.

II. Rewards for Voter Tron Europe
As a first step, the entirety of the 58,982 TRX is taken as a basis for further calculation. In order for the voters to participate in the Rewards according to their number of TRX, the total must be broken down to one TRX. The following calculation step is performed:
• 58,982 TRX / 287,086,901 TRX (total votes Tron Europe) = 0. 0002054 TRX
• If a user now holds 100,000 TRX and votes with them he receives:
100,000 TRX * 0. 0002054 = 20. 54 TRX per day.
This is where the 500% rewards mentioned by Tron Europe come in. It is important to understand that the 500% also means a change in the coins. The 20. 54 TRX are taken as the basis and thus serve as the basis for calculating the terc. The formula is as follows:
• 20. 54 TRX * 5 (500%) = approx. 102. 7 terc.
• Since these 102. 7 terc are paid every 6 hours, the payout per round is approximately 102. 7/4 = 25. 68 terc.
This conversion step completes the 2nd level in the rewards system.

III. Rewards for holding Terc
But Tron Europe also offers another source of income for its voters. However, in order to capture these, it is necessary to change the perspective. The calculation of the TRX is completed. Therefore, only the existing Terc as a basis are of importance for further consideration. The logic of the calculation remains the same as described in level 2. Thus the following formula results for holding the Terc:
100,000 terc * 0. 0002054 = 20. 54 terc per day. If a remuneration of 250 % is now paid for holding Terc, these are:
20,54 terc *2,5 (since 250 %) = 51,35 terc per day and following. 51. 35 terc / 4 payment rounds = 12. 84 terc every six hours.

IV. Rewards for projects
Tron Europe does not only want to redistribute the revenues as SRs, but to create real use cases by supporting projects. These are basic requirements for a mass adaptation of the technology. In this area the 4. Level of the reward system. In order to maximise the incentive to invest and not to discriminate against investors in the projects compared to Terc’s owners, Terc Rewards are also paid for these projects. The logic is to be understood analogous to the 3rd level.
For illustration we take the following facts:
Voter A holds 100,000 terc. A new project on the Tron Europe platform is convincing with a good use case. Now Voter A decides to invest his stock of      100. 000 Terc and receives not 250% but 500% Rewards.
100,000 terc * 0. 0002054 = 20. 54 terc per day. 20. 54 terc *5 (500%) = 102. 7 terc per day and consequently 102. 7 terc / 4 payment rounds = 25. 68 terc every six hours.
Very important here is the period in which this 500% is paid. If the project reaches the soft cap and is thus realized by definition, the payments are stopped. Consequently, neither the 250% nor the 500% will continue to be paid.

V. Medal
As the current last area and 5th level in the Rewardsystem, medals are issued. The following premises are given for the preservation:
• Bronze medal: 2. 000. 000 TRX as a vote for Tron Europe,
• Silver medal: 10. 000. 000 TRX as a vote for Tron Europe,
• Gold medal: 20. 000. 000 TRX as a vote for Tron Europe.
Important: Period of observation of the votes is at least 1 month. The beginning and the end of the month are chosen as the point of view. The medals each represent an equivalent value in terc:
• Bronze: 25,000 terc
• Silver: 150,000 terc
• Gold: 250,000 terc
These medals will be on top, i.e. in addition to the rewards of the previous levels and can be invested in projects.

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