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.