You can now select which academic, etiquette and skill-based proficiencies your character has, by going to this page.
Proficiencies will be used mainly in quests when they are available (though possibly quite rarely), but also in certain roleplay threads and live chats, if the thread initiator decides. They deal mainly with what experience your character has had in specific fields. There is a certain amount of necessary overlap between the proficiencies (medicine and chemistry for example), but don't worry, a good quest writer / GM will take those overlaps into account where possible.
Everyone starts with 10 free proficiency upgrades which can be used to increase any proficiency from 1 to 4 stars, but not 5. Each proficiency alternatively has an RPP and a karma buying option. You cannot upgrade your proficiencies beyond a certain point, if you have a low key skill in that area. Knowledges (academic) require intelligence, skills require skill stat, and etiquettes require charisma.
Here's an overview of the proficiency stars, their cost, their limits, and the key stat required to attain them:

Layman. Might have some knowledge / experience with the subject, but not enough to be of real use in certain situations.

Proficient. You have a decent amount of knowledge / experience with the subject and generally excel at it.
Cost: 6000 RPP or 1 karma
Prerequisite: Key skill of at least 8.

Advanced. You have a good deal of knowledge and experience with the subject. Equivalent to a university degree or similar.
Cost: 7000 RPP or 2 karma
Prerequisite: Key skill of at least 13.

Expert. You have a great deal of knowledge and experience with the subject. You could teach the subject in a university if you were required, and are considered an expert on the matter.
Cost: 8000 RPP or 3 karma
Prerequisite: Key skill of at least 18.

Master. You are considered by many as one of the leading experts on the subject alive today. Your knowledge might not cover every single facet of this subject, but it comes quite close.
Cost: 9000 RPP (cannot buy with karma)
Prerequisite: Key skill of at least 23.

Grandmaster. Your name would likely come up in a list of 50 people who were the absolute best at this subject, living or dead, if you were one for publicity.
Cost: 10000 RPP (cannot buy with karma OR free upgrades)
Prerequisite: Key skill of at least 28.
RPP Levels
RPP levels no longer have a cap. However, you will not yet gain bonus conversion rates per level past 20. This is to make it fair to RP-based levellers, as grid-based levellers currently do not have a level cap. You will be able to trade in RPP at much better rates for levels 20-30+ when beta has ended. This rate will be in line with the increased levelling speeds that grid grinding will allow for, due to new enemies and such coming soon.