By enchanting Battered Golem with Hermetic Study, you grant the mechanical engine of the loop: the ability to tap and ping Smaug the Impenetrable for 1 damage. Because Smaug the Impenetrable possesses indestructible, it safely survives this damage without dying while its triggered ability responds by spawning a Treasure token. The moment that artifact enters the battlefield, Battered Golem's static trigger catches the event and untaps the creature, leaving you primed to tap it all over again for an endless cascade of treasure.