As @Beepidibop said above, the main issue with allowing aYFI to vote has to do with double-voting. We would effectively be diluting the current voting power of every existing YFI holder. I am definitely against this.
Regarding the yYFI– I’m not sure if there will be any way to get around the dilution and double-voting either. To earn yield in the vault, the YFI has to be deposited somewhere– so that means either farming (like with CREAM) or depositing in Aave or another platform and then borrowing stablecoins against it. In either of these situations, there will likely be more YFI that can be borrowed and/or used by a third party– there just are unlikely to be any other ways to generate yield on it, at least that I can think of.
If someone is able to think of a strategy for the YFI vault that keeps the YFI safe from being borrowed out or re-deposited back for voting (and still generates yield), then that would at least eliminate the logistical hurdles.
I also have…ideological issues with a YFI vault at all. YFI is meant for governance, and realistically I think it should be used as so. We can’t do anything to control what other platforms might offer for users depositing their YFI (PASTA, YAM, etc), but I don’t like the idea of yearn incentivizing it being used in these ways.
However, I definitely agree that YFI holders will, for the most part, store their YFI wherever they get the greatest returns. For some, participating in governance is a high-yield reward itself. If we really want more users participating in governance, then I suggest again that perhaps we should think about increasing returns to YFI holders who stake and vote. Realistically, I think if we have a flat 5% performance fee on profits (discussed here), on top of the gas fees already being covered by profits, this should help increase returns. Maybe we increase withdrawal fee to 1%. I don’t have the answers on this last part– but I think it’s simple that if we want more to participate in governance, we need to decrease the opportunity cost of doing so.
Either way, I don’t think voting with anything other than YFI (or maybe gYFI, if we’re able to get that implemented) is a good idea.