This isn't traditional publishing.
It operates under different logic and different business model.
Bar of entry is very low, anyone even an amateur without skills, education or connection, could start posting, but the odds of success are very low. For most, it's a hobby, and the chance of turning the hobby into the paid job is very low. Vast majority don't even try to make it a job, and most who try to make money out of it fail. Sites like Royal Road exploit naïve writers who think they could break through, but in reality, odds of success are very low. Why do you think Royal Road is so eager to backstab each other?
It is not one wholesome book turned into bestseller like in traditional publishing. Web novels are scribbles turned into subscription service, then sold as an anthology on sites like Amazon, and it could tumble down anytime like the house of cards.