Overview
Velas (Virtual Expanding Learning Autonomous System) is a Layer 1 blockchain that launched in 2019 with a thesis centered on AI-enhanced blockchain operations. The project claimed to use artificial intelligence and neural networks to optimize consensus parameters such as block size and transaction throughput dynamically. Built as a fork of Solana with added EVM compatibility (via the vEVM), Velas promised the performance of Solana with the developer ecosystem of Ethereum.
The project was founded by Alex Alexandrov, who also founded CoinPayments, a cryptocurrency payment processor. Over time, Velas has pivoted through multiple narratives — from AI optimization to DeFi infrastructure to general-purpose blockchain. The current state shows a technically functional chain with dual execution environments (SVM and EVM) but minimal ecosystem activity.
Technology
Velas is architecturally a Solana fork, inheriting Solana's Proof of History (PoH) consensus combined with Tower BFT. This provides high theoretical throughput (up to 50,000 TPS claimed) and fast block times. The addition of vEVM provides an EVM-compatible execution environment alongside the native Solana VM, allowing Solidity developers to deploy without learning Rust.
The AI narrative has not materialized into verifiable technical innovation. The claims of neural network-optimized consensus parameters lack transparent documentation, peer review, or measurable performance improvements attributable to AI. In practice, Velas operates as a standard Solana fork with EVM compatibility — functional but not differentiated by any measurable AI component.
The dual VM approach (SVM + EVM) is technically interesting but creates maintenance burden and splits developer attention between two environments. Neither environment has attracted meaningful developer activity.
Security
Velas inherits Solana's consensus security model, which provides reasonable protection against Byzantine faults. The validator set is small — significantly smaller than Solana's — which reduces the cost of potential attacks. The EVM implementation has been audited, but the custom modifications to the Solana codebase introduce potential security risks that may not be covered by Solana's extensive audit history.
The small validator set and low stake value make Velas more vulnerable to consensus attacks than larger PoS networks. The bridge infrastructure connecting the SVM and EVM environments adds additional attack surface. No major exploits have been publicly reported, but the low TVL means there has been limited economic incentive for attacks.
Decentralization
Velas operates with a small number of validators (approximately 100-200), most of which are not well-characterized publicly. The staking economics concentrate validation among a limited set of operators. The Velas team and foundation maintain significant influence over protocol development and governance.
The relatively low validator count and concentrated token distribution result in meaningful centralization. Governance decisions appear to be team-driven rather than community-driven. The project has not demonstrated a credible path toward progressive decentralization.
Ecosystem
Velas's ecosystem is nearly empty. DeFi TVL is negligible — typically under $5M. The WagyuSwap DEX was a notable early ecosystem project but has seen activity decline dramatically. Developer activity metrics (GitHub commits, new contracts deployed) are minimal.
The dual VM strategy has not attracted developers from either the Solana or Ethereum ecosystems. The project lacks the incentive programs, grant funding, or community momentum to bootstrap ecosystem growth. Compared to other EVM-compatible chains, Velas offers no compelling reason for developers or users to choose it.
Tokenomics
VLX has a total supply of approximately 2.1 billion tokens with inflationary staking rewards. The token is used for gas fees, staking, and governance. Distribution included allocations for the team, seed investors, and ecosystem fund. VLX has reasonable exchange listings but thin liquidity.
The inflationary model without meaningful fee burning or value accrual mechanisms creates persistent sell pressure. Staking yields attract some passive holders, but without ecosystem growth, the tokenomics model relies on speculative demand rather than fundamental utility.
Risk Factors
- AI narrative unfulfilled: Core AI thesis lacks verifiable implementation or measurable impact
- Ghost chain: Negligible TVL, transaction volume, and developer activity
- Small validator set: Concentrated validation creates security and censorship risks
- Narrative pivots: Multiple strategy changes signal lack of clear direction
- Competition: No differentiation from dozens of EVM-compatible alternatives
- Token inflation: Continuous staking emissions without corresponding demand growth
Conclusion
Velas is technically functional as a Solana fork with EVM compatibility, but the AI narrative that was its primary differentiator has not materialized into measurable technology. The ecosystem is essentially empty, the validator set is small and concentrated, and the project has pivoted through multiple narratives without finding product-market fit. In a crowded EVM-compatible L1 space, Velas lacks the ecosystem, technology, or community to compete meaningfully. The scores reflect a working chain with no practical adoption or clear path to relevance.
Sources
- Velas documentation (docs.velas.com)
- Velas block explorer
- DeFiLlama Velas TVL data
- CoinGecko VLX token data
- Solana architecture documentation (for fork comparison)
- GitHub repository activity analysis