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.
Here you can see that in the same place, the GPU usage is greater and it's only because I walk around for a while.