Rating Floor - Overloaded ?

All Things Chess
1

I understand the value of a Rating Floor when it prevents a player “Adam” whose true Elo strength is 1700 from purposely losing enough rated games in minor tournaments to drive his rating down to 1599, just in time for the big money tournament.
Adam’s 1600 Floor prevents him from sandbagging his way into a weaker Elo bracket as a scheme to win prize money.

But what I do not understand is - Why is Adam’s Rating Floor number (1600) ever allowed into the calculation that adjusts the Elo ratings of Adam and his opponent, after their latest game against each other?

If Adam’s Elo falls from its highest ever value to a value below his Floor, it could be because his skills have truly declined. Why distort the Elo adjustment calculations by using his Floor instead of his actual latest Elo rating?

I presume the answer is that - We suspect that most of the time a player’s actual Elo falls below his Floor it is because the player is purposely losing.
That suspicion seems unjustified to me. Is there evidence to support the suspicion?

I assume the Floor prevents sandbaggers from achieving illicit entry into lower Elo brackets, so what motivation remains for purposely losing games?

The Floor’s job should be to prevent entry into lower Elo brackets. The additional use of the Floor in Elo calculations is a bad overload of the Floor; I think.

Thanks.

2

Somebody actually on the ratings committee can correct any mis-statements I unintentionally make.

The floor (either ratings-based or money-based) was initially created to guard against sandbaggers. As time went on it was found to be slightly inflationary when some players’ strengths fell below their floors. That inflationary upward pressure on ratings helps counteract the deflationary pressure brought by improving players (a 1400 who takes time off of tournaments while getting lessons becomes 1700 in strength and still has the 1400 rating that deflates the entire pool, are a semi-closed pool plays tournaments within itself while becoming better even though the ratings don’t reflect the improvement).

The natural deflation caused by improving players is partially counteracted by the bonus points awarded to rapidly improving players and partially by the floor effect of players that have become weaker. The variable K might also be a part of it.

P.S. Individual players can appeal to have their floors lowered.