Can someone explain to me how this works exactly?

Is it:

• What ever stone you have when you get the crown i.e. Mage Stone, locked into the crown perminatly.
  
• Or... If I have the Mage Stone and I change to the ritual stone the crown keeps the mage stone and my character gets the ritual stone. Then if I change from the ritual stone to the warrior stone the crown has the Ritual Stone power and my character has warrior?

I'm just abit confused on which way it works, thats all.

If I remember correctly, it says that the crown will retain the effects of the last stone. Something like that. So if have the mage stone, put on the crown and go to the lord stone, it gives you the perks for both. If you then go and pick the thief stone, then the perks come from the thief stone and the last stone you picked, the lord stone. Hope that made sense.