Because of the excellent combination of high detonation and low sensitivity properties of the 1,1-diamino-2,2-dinitroethylene (FOX-7) energetic material (EM), it is useful to explore new energetic derivatives that start with the FOX-7 structure. However, most such derivatives are highly sensitive, making them unsuitable for EM applications. An exception is the new nitroenamine EM, 1,1-diamino-2-tetrazole-2-nitroethene (FOX-7-T) (synthesized by replacing a nitro group with a tetrazole ring), which exhibits good stability. Unfortunately, FOX-7-T shows an unexpected much lower detonation performance than FOX-7, despite its higher nitrogen content. To achieve an atomistic understanding of the insensitivity and detonation performance of FOX-7 and FOX-7-T, we carried out reactive molecular dynamics (RxMD) using the ReaxFF reactive force field and combined quantum mechanics MD (QM-MD). We found that the functional group plays a significant role in the initial decomposition reaction. For FOX-7, the initial decomposition involves only simple hydrogen transfer reactions at high temperature, whereas for FOX-7-T, the initial reaction begins at much lower temperature with a tetrazole ring breaking to form N2, followed by many subsequent reactions. Our first-principles-based simulations predicted that FOX-7-T has 34% lower CJ pressure, 15% lower detonation velocity, and 45% lower CJ temperature than FOX-7. This is partly because a larger portion of the FOX-7-T mass gets trapped into condensed phase carbon clusters at the CJ point, suppressing generation of gaseous CO2 and N2 final products, leading to reduced energy delivery. Our findings suggest that the oxygen balance is an important factor to be considered in the design of the next generation of high-nitrogen-containing EMs.