New corroded borrowed powers system in Coiled Isle

ELI5 on the new borrowed powers system please!

I did the events, completed the intro quest, and got a bunch of stuff in my bags.

There's 2 systems - one with buttons and one with a talents style system. I picked one button and one talent. I have a bunch of coins, some objects I can dialogue with the NPC about, and am very lost.

I checked some of the guides and that only made me more confused. It's me, I know.

Tips?