_Neeraj_
If you're considered for a contract it normally means that your novel should be able to earn 200$ per month. The MGS is quite strict. Publish 1499 words one day instead of 1500 and you're not elligible for it anymore.
The only reason why the MGS exists is to encourage the new authors to get a good release routine (daily release) which is the best way to earn money and secure enough readers' attention. I think most new authors succeed to earn 100-200$ or more after one or two months being premium. So Webnovels doesn't lose much money on this (It was different though when the MGS was at 400$) and what they lose on these authors they will make it back on the long run.
Back on the topic, editors read every new novel. Not totally, but at least the first few chapters. They check then your grammar, your stats like collection,whether your reader community is active and so on. They can also make a contract proposal if your novel is high quality (good grammar, writing style ect..) even if your novel at the moment has no marketing potential or is not popular.
Two reasons for this:
-The popular trend can change (Right now it is CEO Romance for Female and Western Fantasy/Video Games/Apocalypse for males, basically the Spirity Contest genres). If tomorrow, sci-fi becomes the trend they will be lacking this type of stories ect..
-To increase the diversity and quality of the novels here to eventually bring new readers on the app.