It's a planchet flaw. Not technically a mint error, because it can peel and split like that anytime after a coin leaves the mint. By the look of the wear around it, the coin circulated with the defect present for quite some time.
It's "damage", but not in the same league as a hole, a dent or "roadkill" scratches. It shouldn't increase or decrease the value too much.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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