US Cents since mid-year 1982 are made from Zinc plated with ~8 microns of copper. Once the copper is worn off, the Zinc core is exposed. Zinc is a soft metal and reacts with water to make a dusty oxide.
This looks like somebody rubbed both sides with fine-grained sandpaper. Or something else that damaged the rim.
-----Burton
50+ year / Life / Emeritus
ANA member (joined 12/1/1973)
Life member: Numismatics International, CONECA
Member: TNA, FtWCC, NETCC, EveryCountry (online) coin club
Owned by three cats and a wife of 40+ years (joined 1983)
Author: 3rd Edition of the Sample Slabs book,
https://www.sampleslabs.info/