How will my users convert my token to xlm

External question — Stellar Stack Exchange Author: Chris Original post: https://stellar.stackexchange.com/questions/6011 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I am working on an application that will reward users for interacting. I have created my own token and this is what I will use to reward the users. I would like to give the users the ability to cash these tokens out in the future but I am just really confused on where to go from here. How exactly does it work for me to be able to give my tokens a real value? I was pointed to manage sell offer but I dont want my users to have to buy my tokens. I would like to fund this whole operation with my own money. Could I make this a backend operation so that when users attempt to cash out I would then create a sell offer on their behalf and create a buy offer from my distribution account? Thank you

External answer — Stellar Stack Exchange Author: Paul Original post: https://stellar.stackexchange.com/a/6013 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I see two options here: Option 1 (on-chain DEX): You could create a sell offer at your desired exchange rate. This won't require users to buy your token, as you can still issue them yourself from the issuer account. This would keep everything "on-chain", and atomic. Option 2 (off-chain script): Have the users send the tokens back to the issuing account (burning the tokens), and have a backend script watching for incoming payments, which then sends the payout to the user. This is more flexible, but means there is "off-chain" logic. More potential points of failure.