Libya has been wracked by civil unrest since Col Muammar Gaddafi was deposed in 2011. Now, as the situation worsens, the rival government which is based in the east of the country has handed in its resignation.
The move comes after several demonstrations about poverty, power cuts, banking crisis, and corruption.
In one incident, protestors in Benghazi set the government's headquarters on fire as well as fighting with security forces in General Khalifa Haftar's stronghold of al-Marj.
Until recently, demonstrations had focused largely on Tripoli, home to the UN-recognised Government of National Accord, known as the GNA, which is backed by Italy and Turkey.
Haftar is supported by the United Arab Emirates and Egypt.
Since the start of this year, the economic crisis has worsened after Haftar's administration imposed a blockade on Libya's lucrative oil facilities.
Negotiations to end the blockade are underway.