It is not necessarily an evolution of DVMS. The MCP is its own protocol, and ContextVM is the intersection between Nostr and MCP. However yes, you could replace the functionality of a DVMs using MCP.

It can be used for server-side stuff, where your MCP server exposes its capabilities over Nostr, such as tools, resources, and prompts, and consumed just using nostr events. It can also host static files as resources.