The authors and readers of current online literature have undergone a generational shift, and the Z-generation is the main group of readers in the online literary community. This study observes this phenomenon through a virtual ethnography. The new model of internet culture is characterized by stronger interactivity, community, fun, and gaming, which is specifically manifested in bullet screen commenting, the use of memes, joining chat groups, and making online purchases and donations. The interaction between authors and fans is characterized by sarcasm, joyfulness, and lightness. The reading habits of young people in online literature are guided and shaped by the attention economy of internet platforms, and the relationship between readers and platforms is mutually constructed, which makes online literature a type of fan economy. As for the content of the text, readers' expectations and perspectives affect the overall type and character setting of the book. Readers' involvement in online literature production has a positive effect on the sale and subsequent development of online literary works.