The transition from prelife where self-replication does not occur, to life which exhibits self-replication and evolution, has been a subject of interest for many decades. Membranes, forming compartments, seem to be a critical component of this transition as they provide several concurrent benefits. They maintain localized interactions, generate electro-chemical gradients, and help in selecting cooperative functions as they arise. These functions pave the way for the emergence and maintenance of simple metabolic cycles and polymers. In the context of origin of life, evolution of information-carrying molecules and RNA based enzymes within compartments has been subject to intensive theoretical and experimental research. Hence, many experimental efforts aim to produce compartments that contain elongating polynucleotides (also referred to as protocells), which store information and perform catalysis. Despite impressive experimental progress, we are still relatively ignorant about the dynamics by which elongating polynucleotides can produce more sophisticated behaviors. Here we perform computer simulations to couple information production through template-free elongation of polymers with dividing compartments. We find that polymers with a simple ability—biasing the concentration of monomers within their own compartment—can acquire a selective advantage in prelife. We further investigate whether such a mechanism allows for cooperative dynamics to dominate over purely competitive ones. We show that under this system of biased monomer addition, even without template-directed self-replication, genetic motifs can emerge, compete, cooperate, and ultimately survive within the population.