EMDs will continue to work as long as they show quality over time.
In your case, it's too early to say. I would start building more content and backlinks ASAP, or your dream will stop very soon.
EMD penalty is just due to the rubbish content, if your content is unique with good bounce rate then your website ranked well, but small and quality link building is essential.
I dont suppose you considered if the domain you bought was previously owned by someone else who optimized it? This happened to me I bought a domain [name of town]taxi.com that had been owned for a decade by someone who had [nameofthattown]everything.com and links had been built purposely and naturally to it for a decade+ I looked into it the woman got sick dropped some domains and I just happened to buy a domain that already had links pointing to it.
1 - Congratulation on your success
2 - EMD was never punished. All Google did was decreasing it's value in the ranks. So, all sites that relied only on EMD for ranking have dropped
3 - Your success isn't a real surprise for me. One of the most effective ways of analyzing a keyword compeition is looking for EMD Available. If yes, It usually means there is actually no competition for this keyword. Most sites that are ranking are because they are authority and they ranked by accident . So, in most cases good on page optimisation would give you a sweet position. Imagine creating a domain solely for this keyword
4 - Now all you need 3 - 5 high pr rank links and some social signals and you are good to go
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