I am about to build a service where a virtual currency is a vital part. The kind of virtual money, I am talking about here something, which is conceptually equivalent to money in a game like second life, which can be used to buy virtual islands or whatever. The kind of money the users will invest could be several thousand dollars.
My question, is how can I get the users to trust this currency. Specifically, I am asking how I can get my users to trust that they can convert digital currency to dollars in the future. I do have cash reserves to ensure that all of the digital money could be converted to dollars, but how can I prove this to the users? I guess that I could negotiate with an escrow service or something like that, but then I expect to spend 5-10% in fees to them. Are there any other options?
I am already planning on doing everything on the branding side, because I understand the importance of branding with regards to trust.