I am working on an application that would use a Stellar Token as a reward system. I am a bit confused on how I would be able to give these tokens an XLM value. I know I would have to create a sell offer but we only want these tokens to be used within the application.
If you want to control who can hold your token, you'll want to use the
auth_required flag on your token. See the flags section here: https://developers.stellar.org/docs/issuing-assets/control-asset-access/