Every league I've played in runs it the same way: the yellow ball rotates one player per hole, so everyone takes a turn being the goat. Whole team still plays a normal scramble, but the yellow ball score gets kept separately. So no, you're not carrying that thing for 18 holes unless your league has some weird rule and honestly I'd ask the organizer before Saturday rather than find out on the first tee.
The net vs gross thing is the part you actually need to nail down. Every format I've seen uses net because a yellow ball score that has to be gross would be borderline impossible for most teams to ever cash. But I've heard of gross ones in small money games, so it does vary. Just text whoever runs it. Takes ten seconds and saves you a dumb argument at the turn.
On the water question, it's not automatically dead. Most versions let you take your penalty and keep playing the hole, but the yellow ball is out of contention for the prize on that hole. Some let you sub in a new ball as the yellow ball after the drop. Again, league-specific.
Here's the actual strategy though, and it's not the 5 iron pray method. Whoever's holding the yellow ball hits first off the tee, every time. That way if they pump one into the trees, the bombers behind them know they have to play it safe too. If the yellow ball guy stripes one down the middle, everyone else can swing for the fences. And put your steadiest player on the yellow ball holes, not your longest. Boring par golf wins this game.
For $200 pot, yeah, expect a sleeve and a firm handshake. Maybe a beer if you're lucky.
