Sometimes, at completely random intervals, my FPS just drops and keeps dropping until I reset my game. The only thing that at the moment has worked is playing 720p, all low at 30FPS VSync off, and honestly, I hate this, although I love the game so I can live with it but I wish I can improve it somehow.
Sometimes, when I see a mountain in the distance my fps just drops to 20 and stays like that permanently, but when I restart the game I can see the mountain without any fps drop...
Usually it comes to a point where I feel like I'm dragging my mouse because of the input lag.
I have a GTX 1650s 4GB, 16GB RAM and a Ryzen 5 5500, and I use Arch Linux with i3wm, I know it's not the best setup and Palworld uses UE5 which is a high demand hardware graphic motor, but I have read about people playing on even lower hardware than me and they apparently can play perfectly.
Edit: Just add -dx12 to your game parameters at that's it, it runs as it should.