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Read Introduction to 1 Peter


But you are a chosen generation, a royal priesthood, a holy nation, His own special people, that you may proclaim the praises of Him who called you out of darkness into His marvelous light.”
The purpose of our position before God is to praise God. If God does the doing, then God gets the glory. 
that you may proclaim
“That” indicates a purpose clause. 
“Proclaim” means to announce with a focus upon the extent to which the announcement or proclamation extends. It comes from two words: out and proclaim. It is an intense verb meaning to proclaim throughout, to announce, to speak out about, to tell out, proclaim abroad, to publish completely, advertise. God expects to complete a proclamation from us. God wants a full telling out of His praises. This is a reference to a spoken message. 
God wants us to send a message to the world. 
the praises of Him
God wants believer-priests to live out their family characteristics to make it evident to all that their lives are different. 
God’s praises are a manifestation of power characterized by excellence. Praises are God’s eminent qualities, his excellencies. God wants us to proclaim God’s glorious attributes and noble acts. The word “praises” only occurs four times in the New Testament: Phil. 4:8; 2 Peter 1:3,5 and here. “Praises” are the noble acts of God – virtues.
The purpose of the believer on earth is to tell forth the praises of God.
The more we know the Lord Jesus, the more we can proclaim him. 
People read the Christian far more than they read the Bible. They see us, but they only hear about the Lord Jesus. We are either Bibles or liabilities.