Confused by this. If you have fees of 4bps taker/0bps maker bps and you move to 5/-1, you didn't actually give a subsidy to makers, you just created a minimum spread of 2bps
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This is a subsidy to makers if the spread in a zero rebate world was < 2bps since the maker now receives at least 2 bps on a round trip. Of course what actually happens is trading volumes drop as you increased the cost for takers so they have a higher barrier to trade.
So naively I’d say moving from 4/0 to 5/-1 is worth it if spreads are currently > 2bps as it will make markets look tighter. But if spreads are currently < 2bps not worth it as it will cause volumes to drop.
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Note that big maker rebates create weird situations when a maker should move their quote to prevent arb vs another exchange (but doesn’t) and no taker will remove the liquidity because taker fees are high, so the arb persists.
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