This is an interesting idea, but this actually removes the openness of social media, which is the ability to make friends from all around the world, that you may not necessarily have the ability to meet every other day, or essentially, that you may not meet during the year at all. It retains you in this very small circle, and people you know in real life are often relations born out of practicality rather than genuine affinity.
The other issue is the reach. If the people you know aren’t on that app, then the app will be a lonely experience. If the app isn’t widely used, your friends will not be interested in joining when you try to convince them to.
It’s definitely an interesting concept, but it’ll be more of a complementary app to what already exists, because its concept is more of a meet and greet, than a “keep up with my friends and what they’re up to.”