With the popularity of works such as "Dao Guai Xian" and "Ten Days End", many people have found that popular online literature works nowadays pay more attention to readers' practical concerns and contemporary emotions. They explore the dilemma of human existence, the essence of the world's operation, and ethical choices in the digital survival state through gamified settings, which is far from the "straightforward pursuit of pleasure" style of online literature that people remember before. The academic community understands this transformation as an "upgrade and replacement" from "traditional online literature" to "new online literature". In fact, this replacement is the result of dual changes in the imagination environment and production mechanism. The imagination environment and production mechanism jointly influence the transformation of online literature forms. From a literal perspective, 'traditional online literature' is clearly a concept that was later recognized. After the emergence of "new online literature", the academic community turned around and referred to the previously mainstream form of online literature as "traditional online literature". This concept refers to a type of "refreshing literature" with "upgrading" as its core, simple and clear narrative, and direct satisfaction of readers' desires, represented by works such as "Breaking the Sky" and "The Legend of Ordinary People's Cultivation". In traditional online literature, "upgrading" is the most important meaning. By upgrading, the protagonist of online literature can almost solve all problems. Negative experiences such as failure, pain, repression, anxiety, etc. are simply attributed to "not strong enough", and behind them is a relatively single logic of success studies. This narrative certainly has a tendency to excessively smooth out and narrow down complex reality, but it has been effective for a considerable period of time, soothing the readers who crave personal success. Because it uses fantasy to create a correct and feasible upward path, setting the world as an interpretable and conquering object, understanding setbacks as temporary backwardness rather than structural difficulties, presenting a clear and optimistic emotional tone. In terms of narrative structure, this type of online literature presents characteristics similar to traditional grand narratives, namely the preset of universal truth and a high dependence on linear progressive logic. This feature is not only generated by the corresponding imaginative environment, but also closely related to the production mechanism of traditional online literature. In 2003, Qidian Chinese website established a paid reading system based on chapter subscriptions. This system has been operating steadily in the field of online literature for a long time and has become an important support for the development of online literature. Under the paid reading system, online literature platforms need to generate revenue, authors need to retain readers, and readers need to receive definite and continuous feedback - from this perspective, paid readers are not only readers, but also play a role similar to "investors", which is the psychological basis for the establishment of website functions such as "new book investment". So, a "cool article" with fast updates, long cycles, and clear upgrade paths became the optimal result of the tripartite game between the platform, the author, and the reader. By using quantifiable indicators such as level, value, realm, and combat power, upgrading "Shuangwen" clearly demonstrates the progress and future direction of the story. It not only provides readers with immediate emotional rewards in terms of content, but also hides promises of future expectations, making readers believe that their time and money investment will be continuously fulfilled, thereby maintaining a long-term and stable subscription relationship with the author. With the rise of free reading mode, the form of online literature is beginning to transform. Free reading is mainly aimed at groups that were previously difficult to fully cover with paid subscription models, including both the more fragmented reading time and the more urgent need for instant emotional satisfaction among the sinking audience, as well as readers who are unwilling to pay and only read pirated online articles. The free mode mainly generates revenue through advertising. The website inserts two to three ads in the middle of each chapter of the work, and some ads have a minimum viewing time, forcing readers to pause reading. This mechanism indirectly prolongs the reading time of each chapter for readers and changes the narrative rhythm of online article festivals. Advertising becomes a more prominent and forceful interruption symbol than the natural division of chapters, blurring the separation between chapters and making the internal division of chapters more apparent. As a result, the long-term narrative that relies on accumulating climax from multiple chapters is weakened, while the content that excels in short-term emotional conflicts and plot twists is strengthened. The production mechanism and free audience are closely integrated, gradually forming a new form of "cool literature" on platforms such as Tomato Novel that downplays long-term upgrades and highlights short-term feedback. Due to the refreshing skills of short video format and lower reading costs of free online stationery, a large number of "novice" readers - those who have less experience in reading online articles and pursue strong emotional stimulation - are attracted. This has led to changes in the user structure of paid reading platforms. Readers who stay in the paid system often have stronger reading stickiness and willingness to invest. Among them, there is also a considerable group of "old white" readers who have been reading online articles for a long time, and they have gradually developed aesthetic fatigue towards traditional upgraded "cool articles". They have the willingness and ability to support paid platform authors to make new explorations. This allows some authors to experiment with more complex narratives and reflective content while maintaining their livelihoods, giving rise to online articles such as "The Master of Mysteries" and "The Mysterious Immortal Clan" that examine the drawbacks of escalation. It is worth mentioning that after years of development, free reading platforms have also nurtured high-quality and thought-provoking works such as "Ten Days to End" and "The Foolish Play of the Gods". This indicates that the emergence of new online literature cannot be solely attributed to differences in production mechanisms, but more importantly, the imaginative environment shared by authors and readers has undergone a transformation. The "pleasure" of continuous game and difficult progress in a complex system is more in line with the life experience of the new generation of readers. The so-called "imaginative environment" refers to the fantasy materials, narrative inertia, and value expectations jointly formed by the author and readers in long-term cultural practice. It determines how people imagine the world and write their fantasies. The imaginative environment that traditional online literature relies on is more based on the linear expectation that upgrading will inevitably lead to success, and material success will inevitably equal personal happiness. It emphasizes achieving upward flow through continuous efforts and wealth accumulation, and has a relatively single and stable value orientation. New online literature grew up in a completely different cultural context. The popularity of mobile Internet and the promotion of big data algorithms make the new generation of readers represented by the post-95s and post-00s become the "natives" of digital media environment. For them, "systems" (originally derived from games and later applied to online literature, referring to imaginary worlds built with certain rules) are things that pervade every corner of their lives like air, and their daily lives are the process of dealing with various "systems". In terms of entertainment culture, they are also a generation deeply influenced by digital pop art, and are most familiar with the art form that centers around a fantasy worldview and organizes narratives through "rules," "levels," and "mechanisms. The combination of real-life experience and entertainment life has established a highly structured, systematic, and regulated imaginative environment for this generation. In this environment, individuals are accustomed to acting within clear regulations and limited resources, adept at interacting and playing games with the system, and also realize earlier that failure, punishment, and uncertainty are part of the mechanism's operation. For them, the idea that upgrading alone can solve all problems is obviously a bit simplistic. The feeling of continuous gaming and difficult progress in a complex system is more in line with the life experience of the new generation of readers. On this basis, the new online article has restructured and reflected on the theme of "upgrading". Upgrading is no longer just a ladder to victory, but may also come with losses, alienation, and irreversible costs; The powerful protagonist of 'I am determined by my fate, not by heaven' is no longer convincing in new online articles, but has been repeatedly ridiculed. This generation of readers prefers small character protagonists who are deeply constrained by the system during upgrades. Even if these protagonists become stronger, it does not mean absolute freedom or doing whatever they want. Instead, they are forced to shoulder heavier responsibilities and face more cramped situations. Through highly fantastical world settings, the new online literature presents real-life situations under the latest technological conditions in a fable like manner, expressing contemporary readers' true feelings about the complexity of life. This expression is clearly different from traditional realism that focuses on "typified representation of reality", and is therefore referred to as "game realism" in the academic community. In game realism, fantasy is not a means of escaping reality, but a way of deducing reality. With the help of settings, the new online literature constructs parallel "sandboxes" that polarize certain system rules, allowing the protagonist to explore and play games in a fantasy world, thus making a unique response to reality that belongs solely to online literature. New online literature may not be the only form of the future of online literature, but it is indeed a breakthrough new form. Looking back at the development path of online literature, we can see that traditional online literature and new online literature are not simply substitutes, but different forms generated in different production mechanisms and imaginative environments. The paid subscription system and the single success learning imagination have shaped the traditional narrative mode of online literature centered on upgrading pleasure, while the free reading mechanism has promoted audience differentiation and rhythm reorganization. The complex imagination of "system game" has stimulated a new narrative mode of online literature centered on game realism. What is reflected in it is the transformation of life experiences between two generations of readers and authors. In this transformation process, there still exists a group of "intermediate states". They mainly belong to the post-70s and post-80s generations, who are early readers of online literature, have rich reading experience, and have intergenerational differences in imagination environment with new readers. This group of people find it difficult to accept the rough, simple, and short video like plot of free reading "Shuangwen", and cannot adapt to the highly imaginative portrayal of uncertainty and anxiety in new online articles. This puts them in an awkward state of 'no books to read'. Overall, they can be seen as a branch of "Old Bai" readers who still linger on upgrading to "Shuangwen", but with a more refined reading experience. They not only want to see clear emotional feedback and a clear upgrade route in online literature, but also hope that it has a complex and complete fantasy world and logically rigorous story content. Although the needs of "intermediate state" readers are temporarily difficult to meet in the transitional period of the online literature industry, the existence of this group of people is a clear proof of the changing forms of online literature, and their aesthetic tastes have also preserved diverse growth potential for online literature. New online literature may not be the only form of the future of online literature, but it is indeed a groundbreaking new form. It retains some of the traditional background colors of online literature: it still takes fantasy as its basic form and pleasure feedback as its basic promise. However, the new online literature is no longer obsessed with single line success, nor does it avoid pain and cost. It utilizes a highly structured world to present the complexity of system operation, narrating between rules, choices, and consequences. This creative orientation reflects not only the younger generation's clear understanding of the real situation, but also their continuous pursuit of a fairer, more dignified, and better life in an uncertain environment. When fantasy no longer just provides a compensatory answer, but begins to face reality and ask questions, online literature gains broader expression space and richer vitality in the era. Author: Tan Tian (Assistant Researcher at China Academy of Art)