"IN GOD WE TRUST" on the first coin appears to be much wider. I was wondering if this could be a variation of a SBA dollar or is it just something that happened during circulation?
Definitely die wear in that the edges of the die recesses lose their sharpness which causes the letters to actually increase in width. If you were to dig a ditch and then stand on the edge of the ditch causing the edge to crumble, you've just made the ditch that much wider. The same thing occurs when the die wears. The edges of the recesses erode away causing the letters (and other details) to actually get bigger. Another aspect to consider is where the "eroded" metal goes. Into the ditch of course causing the ditch to slowly fill. Combine this erosion "dust" which it must be other wise you'd have die "breakage", along with the oils which are used in the coin making process and you end up with "grease filled" dies which punch out coins with missing details.