Frequently Asked Questions

NatGold Digital’s patent-pending digital mining model unlocks the monetary value of in-ground Certified NatGold Resources through a secure, ratio-controlled tokenization system. Without physically extracting the gold, this approach “exchanges” qualified gold resources for a precise amount of NatGold Tokens. By leaving the gold in nature’s vault, digital mining eliminates the environmental and social impacts of traditional mining. With the help of cutting-edge blockchain technology, digital mining offers a modern, eco-friendly, and responsible way to capture and invest in gold’s enduring value.

No it is not. The value of gold lies in its existence, not in its physical location. Gold’s worth has always been rooted in its universally recognized rarity, durability, and reliability as a financial asset—not simply in where it resides. Most investors never see or touch the gold they own; instead, they rely on financial instruments like ETFs or derivatives that represent its value. The critical factor is verifying the existence of gold resources, not physically removing them from the ground.

In the digital era, we can unlock gold’s investment value without traditional mining. By tokenizing verified in-ground gold deposits through blockchain technology and proprietary digital mining models, we create a digital representation of their worth. This approach preserves gold’s intrinsic appeal as a store of value while eliminating the high environmental, social, and financial costs associated with physical extraction. Gold’s investment value remains accessible and trustworthy, no matter where it physically resides.

We know the gold is there through rigorous, independent technical reports prepared by Qualified or Competent Persons—highly experienced and credentialed geological experts. These professionals don’t simply accept a company’s claims; they independently verify the data collection, sampling, and analysis used to estimate the gold in the ground.

Their work is conducted in accordance with internationally recognized reporting standards, including:

• NI 43-101 (Canada)

• JORC Code (Australia)

• S-K 1300 (United States)

These are the gold standards of geological reporting. They form the foundation of the tokenization certification process used by NatGold Digital. Every gold deposit considered for NatGold Token issuance must be backed by one of these independently reviewed technical reports.

Stock exchanges around the world require these reports before companies can publicly disclose their resource estimates. Mining executives and investment bankers routinely rely on them when making billion-dollar financing, acquisition, and development decisions.

In short, these reports are the cornerstone of credibility in both the geological and financial worlds. Their thoroughness and integrity ensure that when they state a certain amount of gold is present in a deposit—it can be trusted.

At NatGold, we rely on the same standard of evidence the traditional mining world does. The only difference? We choose to digitally mine the gold rather than physically extract it.

Certified NatGold Resources are the portion of a gold deposit that qualifies for tokenization into NatGold Tokens—only after a deposit has successfully passed all required due diligence reviews and had the NatGold Digital Mining Cutoff Grade applied to its certified technical report.

This designation is not a reclassification or adjustment of existing resources. It is a specific outcome determined by a rigorous, multi-phase qualification process outlined in NatGold Digital’s Certified NatGold Resources Due Diligence Policies and Procedures Manual, which includes:

1. AML Due Diligence (Entity & Individual Review)

2. Technical Report Due Diligence (Gold Resource Validation)

3. Mineral Rights Title Due Diligence (Legal Ownership Verification)

Only after a deposit clears all three due diligence stages is the NatGold Digital Mining Cutoff Grade of 0.10 grams per tonne (g/t) applied. At this point, a qualified engineering firm uses the cutoff to evaluate the deposit’s mineralization and determine how much gold qualifies within the recognized resource categories (inferred, indicated, or measured).

The result is the classification of Certified NatGold Resources—a clearly defined, independently verified, and fully qualified volume of gold that can be tokenized. This process ensures the consistency, transparency, and integrity of the NatGold Token ecosystem across all global projects.

Everyone wins with the NatGold Digital Mining Model. Here’s how:

• Governments generate royalty and tax revenue from otherwise non-producing gold deposits, boosting local and national economies.
• Mining companies recoup stranded investments and unlock the potential for profitability without the environmental and social costs of traditional mining.
• Gold investors gain access to an eco-friendly, non-dilutive, tokenized version of gold—an option that was previously unavailable.
• Anti-gold mining activists can promote digital mining as a positive solution when opposing the permitting of new gold mines, offering an alternative that protects the environment.
• The planet and all of us benefit by preserving mountains, rivers, and ecosystems, ensuring a healthier future for everyone.

Governments generate revenue from digitally mined gold deposits in a manner that closely mirrors the traditional gold mining model, but with key distinctions. Much like how a traditional gold producer pays a royalty on extracted gold—often around 2%—a royalty on digitally mined gold would be paid upfront at the point of tokenization, since the entire mining process is instantaneous rather than spread out over time.

Once the NatGold Tokens are sold, taxes on the profits would apply just as they would with physical gold. Unless a government establishes a specific tax rate for digital mining, these taxes would be calculated based on existing tax frameworks. The fundamental distinction is that royalties are collected at the point of tokenization (the digital mining equivalent of extraction), while taxes are applied at the point of sale or disposition of the tokens, ensuring governments capture revenue both at the creation and the eventual realization of value.

Fireblocks Inc., headquartered in New York City, is a globally recognized leader in digital asset infrastructure. Fireblocks specializes in enabling institutions to tokenize and manage digital assets across multiple blockchain ecosystems. With a strong track record of serving internationally recognized financial institutions, they have established themselves as the premier provider of end-to-end solutions for tokenization, storage, and secure transfer of digital assets.

Within the NatGold Digital ecosystem, Fireblocks plays a pivotal role by providing the technological foundation that underpins the tokenization of Certified NatGold Resources. Their advanced multi-chain tokenization protocols enable NatGold Digital to maintain a robust, scalable infrastructure that supports the widespread global trading of NatGold Tokens.

Anchorage Digital, headquartered in San Francisco, is a leading provider of institutional digital asset custody and financial services. As the first federally chartered digital asset bank in the United States, Anchorage is trusted by major financial institutions and investment firms worldwide. The company offers secure, regulatory-compliant custody solutions, staking services, and trading infrastructure for a broad range of digital assets.

Within the NatGold Digital ecosystem, Anchorage Digital plays a dual role. It acts as the secure, regulated custodian for NatGold Tokens, ensuring that these assets are stored safely. Additionally, its institutional trading platform facilitates efficient, transparent trading of NatGold Tokens. By working in tandem with NatGold Digital’s tokenizer, Fireblocks, Anchorage provides seamless, integrated custody and trading services that enhance institutional confidence and support the long-term success of NatGold Tokens in the global market.

NatGold Tokens will be available on a variety of leading digital asset platforms. Institutionally, they will be offered through our customized trading platform with Anchorage Digital. To ensure broad accessibility, we’re working to list them on major exchanges like Coinbase, OTC markets, and decentralized platforms. Register on our website to stay informed as we approach the inaugural NatGold Token minting, so you’re ready to acquire tokens as soon as they become available.

NatGold Integrity Vault™ LLC is a tax-efficient Delaware-based subsidiary of NatGold Digital Ltd. It serves as a “vault” for registering and holding mineral rights titles associated with Certified NatGold Resources, and acts as a form of trustee holding these titles for the benefit of all NatGold Token holders. By securely maintaining these titles, the LLC ensures that every NatGold Token is fully backed by verified gold resources stored safely in nature’s vault.

In addition, the LLC helps maintain the integrity, transparency, and auditability of the NatGold Digital Mining Ecosystem. By functioning as the legal custodian of the mineral rights titles, NatGold Integrity Vault LLC ensures that the tokenization process remains secure, compliant, and beneficial to NatGold Token holders.

To qualify for tokenization as Certified NatGold Resources, the following criteria must be met:

1. Gold resources must be verified in a technical report compliant with JORC Code, NI 43-101, or S-K 1300 standards.

2. Technical reports must undergo and pass rigorous independent technical validation and mineral rights title verification.

3. Title owners must successfully clear KYC and Anti-Money Laundering (AML) checks.

4. Titles must not be associated with active exploration or mining operations.

5. Titles must be fully transferable and perpetual, ensuring ownership does not expire.

6. Titles must pertain exclusively to subsurface minerals and must not incur ongoing costs.

7. An independent mining engineering firm must complete a NatGold Digital Mining Technical Report, applying the standardized NatGold Digital Mining Cutoff Grade to accurately determine the quantity of Certified NatGold Resources eligible for tokenization.

The NatGold Tokenization Queue is a structured system that organizes and prioritizes the tokenization of Certified NatGold Resources. Once a mining company’s gold resources have been verified and certified as meeting NatGold Digital’s strict criteria, these resources are entered into the Tokenization Queue. The queue ensures an orderly process for minting NatGold Tokens, determining the sequence in which certified gold deposits are tokenized into NatGold Tokens.

Beyond its role in maintaining transparency and efficiency, the Tokenization Queue also assists in matching new token supply to market demand. By carefully managing the tokenization process, the queue helps maintain a stable and reliable marketplace for NatGold Tokens. Over time, this stability supports the long-term objective of enabling NatGold Tokens to function as a stablecoin-like asset, backed by verifiable in-ground gold resources.

Yes. To help ensure an orderly and stable marketplace, NatGold applies fixed escrow provisions based on the size of each token recipient’s allocation at the time of tokenization.

The escrow provisions are as follows:

• If the allocation is 20% or less of the total tokens minted for a project:
  There are no escrow restrictions. All tokens are fully transferable upon issuance.

• If the allocation is greater than 20% but less than or equal to 50%:
  Only the portion above 20% is subject to escrow. These tokens are locked for six (6) months.

• If the allocation exceeds 50%:
  The portion above 20% and up to 50% is escrowed for six (6) months, and any portion above 50% is escrowed for twelve (12) months.

Example:
If a token recipient is allocated 60% of the total tokens:

• The first 20% is immediately transferable

• The next 30% (20–50%) is escrowed for 6 months

• The final 10% (above 50%) is escrowed for 12 months

All escrow terms are embedded into the Title Exchange and Tokenization Agreement and are securely managed through institutional custody. Escrowed tokens are automatically released once their respective terms expire.

This structured approach helps support stable price discovery, reduces the risk of sudden market pressure, and reinforces NatGold’s long-term commitment to building a trusted, asset-backed digital token economy.

Mineral rights titles that don’t expire ensure the long-term stability and value of the underlying gold resources. Permanent or perpetual-like titles provide certainty to investors that the resources backing NatGold Tokens remain secure and legally valid over time. This permanence removes the risk of ownership lapsing, which could otherwise undermine confidence in the tokens and disrupt the ecosystem’s integrity. By guaranteeing that mineral rights remain valid indefinitely, NatGold Digital can maintain a stable foundation for tokenization, ensuring that each NatGold Token continues to be fully backed by in-ground Certified NatGold Resources.

Ensuring that mineral rights titles come with no ongoing carrying costs or fees is critical to maintaining a stable, non-dilutive investment model. Traditional above-ground gold storage incurs various ongoing expenses such as insurance, security, and maintenance. By contrast, NatGold Tokens are underpinned by in-ground resources that do not require such overhead. This approach means that the full value of the gold remains intact, with no incremental costs eroding the baseline intrinsic value or diluting the investment over time.

NatGold tokenization ratios are the standardized conversion rates used to determine how many NatGold Tokens can be digitally minted from measured, indicated, and inferred gold resources. Embedded in a smart contract and integral to NatGold Digital’s patent-pending digital mining model, these ratios reflect the level of geological confidence for each resource type.

• Measured Resources: These are the most reliable resources and are tokenized at 80%, meaning one troy ounce of measured resources is represented by 0.80 of a NatGold Token.
• Indicated Resources: These resources are less certain than measured resources, resulting in a 40% representation—each troy ounce of indicated resources equals 0.40 of a NatGold Token.
• Inferred Resources: Being the least certain, inferred resources are tokenized at 20%, with one troy ounce represented by 0.20 of a NatGold Token.

These ratios were developed through established industry protocols and a data-driven analysis of resource reliability. This standardized approach ensures transparency and consistency, guaranteeing the uniform and homogenous nature of every NatGold Token minted. By maintaining a clear and consistent standard, NatGold Digital makes it easy to understand exactly how each type of resource converts into tokens, with all calculations based on the commonly understood measure of troy ounces.

Yes, all NatGold Tokens are homogeneous in value and structure. Each token represents a standardized, verified amount of Certified NatGold Resources, ensuring consistency and interchangeability. Gold itself is homogeneous by nature, whether stored above ground in vaults or securely vaulted below ground. This inherent uniformity ensures that NatGold Tokens maintain their equivalence across trading and investment platforms, regardless of the gold’s origin.

A one-troy ounce NatGold Token represents the digitally tokenized value of in-ground, Certified NatGold Resources. This measure allows for a straightforward comparison to traditional gold pricing, which is commonly quoted in troy ounces. By equating tokenized gold resources to the familiar metric of one troy ounce, NatGold Digital makes it simple to understand how resources are converted into tokens under its resource tokenization ratios. This approach also helps investors directly track and compare the NatGold baseline intrinsic value against the price of above-ground gold.

In exact terms, one troy ounce of NatGold is equated to one ounce of Certified NatGold Resources that remains securely vaulted in the earth.

Certainly! NatGold Tokens are designed to be highly divisible, allowing trading and ownership in much smaller fractions than a full troy ounce. In fact, each NatGold Token can be divided up to 18 decimal places, making it easy for investors to purchase and trade only as much as they need. The minimum tradable amount is 0.01 of a one troy ounce NatGold Token, providing unparalleled flexibility and accessibility for a wide range of investors, from large-scale institutional participants to individual investors who may prefer smaller increments.

The NatGold Digital ecosystem prohibits any form of mining exploration, extraction activity, or subsurface investigation. This is reinforced by the third of the seven tokenization approval criteria that a mining company must meet in order to have their resources certified as Certified NatGold Resources. Moreover, when a mining company transfers the mineral rights title for these Certified NatGold Resources to the NatGold Integrity Vault™ LLC, it effectively “sells” its title in exchange for a ratio-controlled amount of NatGold Tokens. At that point, the company no longer owns the mineral rights, and any exploration or extraction activity would be illegal.

In addition, the Operating Agreement of the NatGold Integrity Vault explicitly prohibits any exploration or production activity. As the rightful legal owner of the mineral rights title and associated Certified NatGold Resources, the NatGold Integrity Vault holds these rights on behalf of NatGold Token holders in a trustee relationship. This ensures that the resources remain untouched and fully backed by the ecosystem’s stringent compliance measures.

Once a mineral rights title is registered to the NatGold Integrity Vault LLC and ownership is effectively transferred in exchange for NatGold Tokens, the drill core remains the responsibility of the contributing mining title owner. NatGold Digital has no practical reason to take possession of or safeguard the drill core.

This is no different from traditional gold mining: once the gold has been extracted, the drill core no longer holds operational value for the producer. The core’s primary purpose was to help define the gold deposit during exploration and development. After mining, it may have some residual informational value for regional exploration, but not for the mined-out project itself.

Similarly, in the NatGold model, once the gold has been digitally mined and the mineral rights title is secured within the Integrity Vault, the process is complete and irreversible. There is no mechanism for future exploration or physical extraction. In essence, the drill core has no value to NatGold Digital once the digital mining process is finalized—just as it has no value to a gold producer once the physical gold has been extracted.

The NatGold Contingency Fund is a form of industry self-insurance that helps protect the integrity of tokenized Certified NatGold Resources. When NatGold Tokens are minted, 5% of each minting is set aside into the contingency fund. Administered by NatGold Integrity Vault™ LLC, these tokens are held in escrow and accumulate over time, creating a reserve that can address unforeseen events, such as illegal mining or other activities that might jeopardize previously tokenized gold resources.

If such a situation arises, the affected mineral rights title would be removed from the NatGold Integrity Vault along with the corresponding NatGold Tokens issued at the time of minting. These tokens would then be “burned” to ensure the integrity of the ecosystem, effectively removing both the compromised title and its related tokens from circulation. This fund serves as a safeguard, ensuring the ongoing trustworthiness and stability of the NatGold Digital ecosystem.

NatGold Community Watch is a democratized surveillance initiative that enables the public to report suspected mining activity on properties whose subsurface mineral rights have been tokenized as Certified NatGold Resources. To facilitate transparency, NatGold Digital publicly provides access to relevant mineral rights titles, technical reports compliant with JORC, NI 43-101, and S-K 1300 standards, and associated due diligence documentation. Additionally, satellite monitoring links allow community members to observe real-time activity at these properties. Should suspicious mining activity be detected, individuals can promptly report their concerns to a dedicated email address: surveillance@natgold.com, triggering immediate investigation by NatGold Digital.

It is important to emphasize that NatGold Tokens exclusively represent subsurface mineral rights and do not extend to surface rights. Consequently, activities that might initially seem unauthorized, such as real estate development, could be entirely legitimate. This initiative promotes transparency, encourages proactive community involvement, and safeguards the integrity of the NatGold Digital ecosystem.

NatGold Digital’s focus on gold stems from its unique role as a store of value, a quality that distinguishes it from all other metals. Gold’s primary utility is its ability to hold and preserve wealth, a characteristic that exists independent of its extraction or industrial use. Unlike other metals, gold’s investment value is inherent and does not require it to be mined and brought above ground to be realized.

Why Not Silver, Copper, or Other Metals?

While metals like silver, copper, nickel, and lithium are undoubtedly valuable, their worth is primarily tied to their above-ground industrial applications.

• Silver: Much of silver’s value comes from its use in electronics, solar panels, and other industrial processes. Although silver has a historical association with money, its modern demand is primarily driven by its utility in industry.
• Copper: Copper is almost entirely an industrial metal, essential for electrical wiring, construction, and renewable energy technologies. It lacks the intrinsic association with wealth storage that defines gold.
• Nickel, Lithium, and Others: These metals are critical for specific industries, such as battery production and energy storage, but their value is tied to evolving technologies and market cycles. They lack the universal, timeless appeal that makes gold ideal for tokenization.

Gold’s Unique Advantage

Gold’s value does not depend on its extraction or industrial utility. It serves as a store of wealth simply by existing. For thousands of years, gold has been held in reserve, minted into coins, or used in jewelry as a symbol of stability and prosperity. This makes it fundamentally different from metals whose worth is largely determined by their practical applications above the surface.

By focusing on gold, NatGold Digital ensures that its tokens represent a resource whose primary value is rooted in its role as a stable, universal investment.

The NatGold digital gold mining model is centered on tokenizing the existence of in-ground gold, and gold resources measure exactly that—the existence of gold, with probabilities assigned to each category. Measured and indicated gold resources can be converted into proven or probable reserves based on a range of factors that determine the economic viability of extraction—factors that have little to do with the gold’s existence itself. These factors include environmental characteristics, metallurgy, proximity to infrastructure, water resource availability, deposit depth, taxation considerations, political stability, gold price, security concerns, and, most critically, environmental and social permitting issues.

It’s essential to understand that the quantity of gold does not change when resources are reclassified as reserves. The gold’s existence remains constant. Since the NatGold model is focused on tokenizing the existence of gold and leaving it securely vaulted in the earth, it avoids the philosophical and logistical complexities of a model aimed at assessing the economic feasibility of extracting gold at a specific point in time.

Measured resources today could become proven reserves tomorrow and then revert back to measured resources as variables like gold prices or environmental permitting evolve. This highlights a key difference: while reserves are subject to subjective economic and logistical considerations, the classification of gold resources is based on objective geological processes designed to define the quantifiable existence of gold in the ground.

In the context of a digital gold mining model, what matters most is the existence of gold resources–making them the only relevant consideration for digital mining into NatGold Tokens.

A cutoff grade is the minimum concentration of gold in a deposit that can be economically extracted, considering current market conditions and costs. In technical terms, it acts as a benchmark or threshold, helping to define which parts of a mineral deposit are classified as resources. For example, think of a ladder where each rung represents a higher concentration of gold in the rock. Everything above a certain rung—the cutoff grade—is counted as part of the resource, while everything below it isn’t.

This threshold directly impacts the reported size and classification of measured, indicated, and inferred resources in technical reports like those compliant with JORC Code, NI 43-101, or S-K 1300 standards. Factors such as prevailing gold prices, production costs (AISC), and site-specific conditions influence the cutoff grade. As these economic and operational parameters change, the cutoff grade can be adjusted, causing the reported quantity of resources to shift even though the physical amount of gold in the ground remains unchanged. Ultimately, the cutoff grade is a critical component of resource estimation in the traditional mining model, where economic factors determine what portions of a deposit are economically viable to extract.

A standardized cutoff grade is essential for consistency and reliability within the digital gold mining ecosystem. When digitally mining gold that remains securely stored within the earth’s crust—free from production-related cost variables—establishing a fixed cutoff grade creates a clear departure from traditional mining methods.

In conventional mining, cutoff grades fluctuate in response to changing economic conditions, leading to inconsistent resource estimates. When gold prices rise faster than All-In Sustaining Costs (AISC), mining companies can ask engineering firms to revise their resource calculations. Without drilling additional holes or conducting new geological work, companies capture more of a deposit’s lower-grade material simply by lowering the cutoff grade. This approach transforms previously uneconomic gold into potentially viable resources. However, this viability remains conditional, given traditional mining’s dependence on the economics of physical extraction.

Digital gold mining operates fundamentally differently. It disregards production costs and fluctuations in gold prices, recognizing value solely based on the confirmed presence of gold, regardless of its earthly location. Under this model, all gold is considered homogeneous, similar to refined gold above ground. Defining and universally applying a single standardized digital mining cutoff grade across all technical reports is crucial for accurately determining Certified NatGold Resources for digital mining purposes. This ensures consistent tokenization and uniformity among NatGold Tokens.

Within this framework, factors such as gold prices and extraction costs become irrelevant. NatGold Tokens represent a weight-based transfer of intrinsic value from nature’s vault into a digital format. While market valuations of gold might affect token prices after tokenization, they do not influence the standardized weight or inherent consistency of NatGold Tokens.

The NatGold Digital Mining Cutoff Grade is set at 0.10 grams per tonne (g/t). This benchmark is both rational and realistic—some mining operations in places like Nevada are already extracting gold at or below this grade. However, in the NatGold model, this threshold is not used for deciding whether to mine, but rather for defining whether gold qualifies for digital tokenization.

Importantly, this cutoff grade is only applied after a gold deposit has passed NatGold’s rigorous due diligence process. Once approved, a qualified engineering firm re-analyzes the existing technical reports—prepared under NI 43-101, JORC Code, or S-K 1300—to apply the 0.10 g/t cutoff and determine the gold mineralization that qualifies as Certified NatGold Resources. These resources are then eligible for tokenization into NatGold Tokens.

This standardized approach is part of what ensures the homogeneity of all NatGold Tokens and is a core element of the multi-patent pending NatGold digital mining process. The cutoff grade itself is specifically included in NatGold’s filed patent applications.

The NatGold Real-Time AISC Index is a continuously updated measure of the global average cost to mine, refine, and market a troy ounce of gold. It is derived from a comprehensive dataset of publicly traded gold producers, ensuring that it reflects the most current cost data as new financial reports are released.

This index is integral to determining the Baseline Intrinsic Value of NatGold Tokens. By subtracting the NatGold Real-Time AISC Index from the current COMEX gold price, NatGold Digital can calculate the average profit margin per ounce of gold still in the ground. This calculation establishes the Baseline Intrinsic Value of Certified NatGold Resources, providing a transparent, logical foundation for valuing NatGold Tokens.

The Sustainability Premium refers to the additional market value that may be attributed to NatGold Tokens because they offer a sustainable, environmentally responsible alternative to both traditional gold and mined cryptocurrencies like Bitcoin.

Unlike conventional gold mining—which often involves environmental destruction, social disruption, and high financial costs—and unlike Bitcoin and other cryptocurrencies that require massive energy consumption for mining without any intrinsic backing, NatGold Tokens are digitally mined with minimal energy use, no environmental harm, and are 100% backed by Certified NatGold Resources.

As investors increasingly prioritize sustainability and ethical business practices, assets that align with these values can command higher market valuations. A clear example of this phenomenon can be seen in the electric vehicle sector, where companies like Tesla have achieved valuations far beyond traditional automakers—largely driven by investor demand for solutions aligned with a more sustainable future.

NatGold operates within this same powerful dynamic.

By offering an environmentally responsible, truly intrinsic alternative to traditional gold and mined cryptocurrencies, NatGold Tokens are positioned to attract a similar Sustainability Premium—potentially resulting in trading prices that far exceed the Baseline Intrinsic Value as broader markets recognize and reward the positive environmental and societal impact embedded in the NatGold model.

In short, the Sustainability Premium captures the idea that doing good creates added value—allowing NatGold Tokens to stand apart from traditional gold, Bitcoin, and other unsustainable digital assets, and positioning them to benefit from the same values-driven market forces that have transformed entire industries.

NatGold Tokens are considered a non-dilutive gold investment because they are fully backed by Certified NatGold Resources left securely in the ground.

Unlike traditional above-ground gold investments—where vaulting costs, storage fees, and other ongoing expenses can erode an investor’s value—NatGold’s approach eliminates these additional costs entirely. Each token’s value remains directly tied to the intrinsic profitability of the in-ground gold resources, without being diminished by extra fees, inflationary pressures, or hidden expenses.

This non-dilutive structure can create an additional Non-Dilutive Premium above the token’s Baseline Intrinsic Value.

Investors recognize that the absence of ongoing costs ensures a purer, more transparent gold-to-token relationship, making NatGold Tokens a more attractive and efficient way to gain exposure to gold. Over time, this characteristic can broaden investor demand, helping drive the token’s market value above its Baseline Intrinsic Value.

The price of NatGold Tokens is designed to move in alignment with fluctuations in the price of gold. For example, if the price of a one-troy ounce gold coin increases by $100, a one-troy ounce-equivalent NatGold Token would be expected to see a comparable increase.

The value of NatGold Tokens reflects a discount to above-ground gold, calculated by subtracting the NatGold Real-Time AISC Index from the COMEX spot gold price. This calculation shows the average global profit per ounce of extracted gold, serving as the baseline intrinsic value of Certified NatGold Resources that remain in the ground.

Over time, the sustainable production attributes and non-dilutive nature of the NatGold Token may result in a gradual “premium creep” that reduces the discount. However, this process is expected to occur gradually and is not directly tied to daily gold price fluctuations. In the short term, changes in gold’s spot price are expected to be proportionately reflected in NatGold Tokens.

In summary, while long-term factors may influence the token’s overall value, NatGold Tokens are designed to mirror the daily price movements of gold.

NatGold Tokens could indeed be positioned as a type of stablecoin, given their backing by Certified NatGold Resources. Unlike traditional stablecoins, which are typically pegged to fiat currencies or other assets, NatGold Tokens derive their intrinsic value from the economic worth of untouched gold deposits. By tokenizing these verified resources through a transparent, blockchain-based process, NatGold Tokens provide a level of stability that mirrors the enduring appeal of gold itself.

To support market stability and reliability, NatGold Digital has introduced multiple supply-side controls. The NatGold Tokenization Queue regulates the pace of tokenization over time, ensuring a measured approach to introducing new tokens. Additionally, escrow trading restrictions on minted tokens serve as a flexible mechanism to release supply as market demand increases. This combination of steady tokenization and responsive supply adjustments is designed to maintain a balanced marketplace and prevent excessive volatility unrelated to the underlying gold value.

Over time, as more investors and markets recognize the tokens’ reliability and intrinsic gold backing, NatGold Tokens could be seen as eco-friendly, gold-backed stablecoins, providing a stable store of wealth within the broader digital asset ecosystem.