I was in their initial cohort, and received a hundred bucks, which they paid with no problems.
They work on a voting system, where each chapter can receive one vote from each reader, so the more chapters you submit, and the more readers you get, the more votes you can accumulate. The votes are cumulative, so the stories running the longest with the most chapters have an advantage. The top 30 each month receive a payment, and since the votes are cumulative, once you break into the top 30, you can generally stay, since being in the top 30 will bring you more readers and more votes, etc. etc. The top story every six months gets $500 (I think). They've also started a donation system where you can put a donation button on your story.
Pros: -motivation to continue to write a story
-the staff seems professional
-potential for payment and exposure
Cons: -you only get paid if you're in the top thirty or solicit donations
-you have to edit your own work, and if you miss something you can't go back and change it
-they haven't announced (that I'm aware of) how they are going to sustain the business in terms of revenue (will they charge a subscription fee, do ads, etc.)
It's been a generally fun experience, but I haven't made it into the top thirty. I publish one chapter a month, so I'll probably give it another six months and then discontinue if I haven't made it by then.