Originally Posted by
thevoicefromwithin
PRA is a modifier based on your (visible) rank and your (invisible) MMR. The adjustment is supposed to help you reach the rank, that the Matchmaker believes you belong, quicker. This is based on past performance and past opponents' strength.
It's needed for two reasons. First, initial season ranking is limited to Dia 3 or worse. So even if your MMR indicates GM skill, you land in Dia 3. To leave that rank behind, you receive the adjustment points. Secondly, two players with identical starting MMR and identical win rate can have different skill. Let's assume A and B start with 2000 MMR. A loses 50 games, then wins 50. B wins 50 games, then loses 50. B is significantly better as he reached his 50:50 win quota against on average stronger opponents. Without adjustment, B and A would hold the same rank. With adjustment B will be higher.
So far in a perfect game with unlimited players and only balanced games. When the Matchmaker due to wait time constraints creates unbalanced matches, an adjustment is needed as well. I have no clue if it's done via the PRA as well and I have generally no clue how the formula looks.