- Edited
In addition, if Webnovel is worry about IP revenue sharing and whatnot (TV, movies, games etc...) the contract for this fan translator could be just revenue sharing from coin purchase only.
There is no revenue sharing of IP sales like tv, movies, games...
For example, chapter 437 of this fan translator generates $50 in purchase (from coins), the fan translator gets 50% of it. But if this novel is made into an English language game, the fan translator would not get a cut.
If WN is worry about a dropped novel suddenly become very popular and generate a massive amount of money, it could put into the contract a revenue share cap. For example, a maximum of $60 per chapter to the fan translator. Though for most dropped novels, it is very doubtful to generate anywhere near $120 per chapter in revenue for that $60 cap to kick in.
A Novel Has been Dropped most likely because:
It cost $30-$40 to translator/edit.
It generates $20 in revenue.
The more chapters you translate, the more money you will lose.